IMPACT OF CAPITAL MARKET ON ECONOMIC GROWTH IN NIGERIA

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Date

2017-10-13

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Department of Banking and Finance, Nasarawa State University, Keffi.

Abstract

The capital market is a major driving force of economic growth and development of a nation. This means that the performance of the capital market is an impetus for economic growth and development. Nigeria is not left out in the desire to maximize the gains of the capital market to boost its economy. This research empirically examines the impact of the Nigerian Capital Market on the economy looking at 36 years period from 1981 to 2016. The study seeks to determine the trend of capital market over the years, examine the relationship between capital market and economic growth, and to proffer recommendations based on this research findings. The secondaiy data source was usedfor this study. The study adopted descriptive research design and estimated the empirical models using the Ordinary> Least Square (OLS) technique for the study. Economic growth was proxied by Real Gross Domestic Product (RGDP) while the capital market variables considered include: market capitalization (MCAP), total value traded ratio (VTR), turnover ratio (TOR) and foreign direct investment (FDI). The evidence from this study reveals that the activities in the capital market tend to impact positively on the economy. It was concluded and recommended that the government and regulatory authority should initiate policies and measures that would encourage more companies to access the market and boost investors' confidence in the running of Nigerian Capital Market so that it could contribute significantly to the growth of economy

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Keywords

Capital market, Financial instrument, Gross domestic product, Stockbroker

Citation

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https://keffi.nsuk.edu.ng/handle/20.500.14448/980

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