Law-Finance-Growth Nexus in the Context of Africa

36 Pages Posted: 12 Dec 2018

Date Written: May 16, 2018


This article seeks to put the law-finance-growth nexus into the context of Africa. As of 2017, the African Securities Exchanges Association has 27 securities exchanges as full members. The Johannesburg Stock Exchange is the most developed of all, especially with respect to its market capitalization. Its socio-legal proximity with the English system may provide a good explanation to its phenomenal growth relative to the rest in the region. However, such a socio-legal proximity is indeed shared by a number of other former British colonies such as Nigeria and Zimbabwe. Law alone may not account for the rise of the Johannesburg Stock Exchange. Furthermore, this article seeks to argue whether there is a genuine need for the African countries to have a stock market, which requires highly evolved legal, market and governmental institutions and norms that often do not pre-exist in these countries. On the one hand, the article will look at Africa in general. On the other hand, it will put certain discussions into the context of selected African countries.

Keywords: Africa, Institutions, Economic Development, Law, Finance

Suggested Citation

Yeung, Horace W.H. and Huang, Flora, Law-Finance-Growth Nexus in the Context of Africa (May 16, 2018). Law and Development Review, University of Leicester School of Law Research Paper No. 18-06, Available at SSRN:

Horace W.H. Yeung (Contact Author)

Leicester Law School ( email )

University Road
Leicester LE1 7RH, LE1 7RH
United Kingdom

Flora Huang

University of Derby ( email )

Kedleston Road
Derby, Derbyshire DE22 1GB
United Kingdom

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