Browsing by Author "William, Nelson"

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    Determinants of stock prices: the case study of Dar es Salaam stock exchange: 1998-2005
    (University of Dar es Salaam, 2006) William, Nelson
    This study examines the general relationship between stock prices and macroeconomic variables on the Dar es Salaam Stock Exchange (DSE), using the Dividend Discount Model, Vector Error Correction Model, Impulse Response Functions and the Variance Decomposition Model. Despite the major economic reforms which are taking place now in the Tanzanian economy, the functioning of the Dar es Salaam Stock of Exchange remained consistently during the period of the study. The sharp increases in stock prices were mainly due to the growth in GDP and more specifically the increase in industrial production that was caused by the economic reforms that in turn facilitated the inflow of foreign capital investment. A gain, increase in the stock prices can be explained by the movement of monetary aggregates and interest rate on treasury bills.