Modelling macroeconomic determinants of stock market prices: Evidence from Namibia

Joel Hinaunye Eita

    Research output: Contribution to journalArticleResearchpeer-review

    13 Citations (Scopus)


    This paper investigates the macroeconomic determinants of stock market prices in Namibia. The investigation was conducted using a VECM econometric methodology and revealed that Namibian stock market prices are chiefly determined by economic activity, interest rates, inflation, money supply and exchange rates. An increase in economic activity and the money supply increases stock market prices, while increases in inflation and interest rates decrease stock prices. The results suggest that equities are not a hedge against inflation in Namibia, and contractionary monetary policy generally depresses stock prices. Increasing economic activity promotes stock market price development.
    Original languageEnglish
    Pages (from-to)871 - 884
    Number of pages14
    JournalJournal of Applied Business Research
    Issue number5
    Publication statusPublished - 2012

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