Abstract:
The stock exchange markets play a strategic and an effective role in accelerating the rates of economic growth and development in different countries, both developed and developing countries, particularly in Tanzania, through ensuring the availability of liquidity necessary to finance various projects, as they allow the mobilization of funds for deficit units and provision of investment opportunities to surplus units, therefore, they are considered as the best platform through which resources can be allocated.
This research aims at examining the effect of Dar es salaam Stock Exchange on economic development in Tanzania during the period under study (2010-2018). The researcher has applied a descriptive and historical research methodology in undertaking his study, where data collected was analyzed using statistical package for social science (SPSS). The findings of the study have revealed that, there is a significant positive relationship between economic development and the market capitalization of stock exchange.
Based on research’s findings, a researcher recommended that : efforts should be consolidated by Management of the stock exchange market to maintain the attained achievements, diversification and listing of new product portfolios, furthermore, introduction of Islamic financial instruments, motivating various companies to list in the exchange by facilitating listing requirements, necessity of sharing experience with the international stock exchanges, consequently, attention needs to be paid to statistical data and intensification of awareness-raising programmes regarding investment in securities.
The Structure of the research comprises three chapters, where the chapter one deals with a literature review of stock exchange markets. while, chapter two focuses on the role played by the Dar es salaam stock exchange in enhancing economic growth in Tanzania, and the Last chapter is concerned with data analysis, econometric model specification and testing hypothesis.
