<![CDATA[Purpose: This study examines the short- and long-run relationships between stock market performance and economic growth in Malawi, controlling for broad money growth, Foreign Direct Investment (FDI), inflation, and trade openness. Research Methodology: Annual data from 1995 to 2025 were analyzed using the Autoregressive Distributed Lag (ARDL) bounds-testing approach, following Phillips-Perron unit-root tests. An error-correction model and diagnostic tests assessed short-run dynamics and model stability. Results: The bounds test confirmed cointegration (F = 5.214). Long-run estimates revealed positive coefficients for Malawi All Share Index (MASI) returns (0.033), broad money growth (0.084), FDI (0.413), and trade openness (0.199), while inflation exhibited a negative coefficient (−0.215). The error-correction coefficient (−0.517) indicated approximately 52% annual adjustment toward equilibrium. Conclusions: Stock market performance is positively associated with economic growth, although macroeconomic stability, particularly inflation control, remains essential for sustainable development. Limitations: The small annual sample, reliance on nominal stock returns, and exclusion of structural breaks and broader market-development indicators limit generalizability and causal interpretation. Contributions: This study extends finance-growth theory in frontier-market contexts by providing updated evidence that stock market performance supports long-run economic growth alongside macroeconomic fundamentals. It further advances empirical understanding through standardized effect comparisons and equilibrium-adjustment estimates.]]>
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