GLOBAL FINANCIAL CRISIS, THE CAPITAL MARKET AND ECONOMIC; GROWTH IN NIGERIA

The global financial crisis began in industrialized countries and quickly spread to emerging market and developing economies. Investors pulled capital from countries and caused values of stocks and domestic currencies, to plunge, pushing economies worldwide either into recession or into a period of slow economic growth. Thus, this paper examines the relationship between Gross Domestic Product and All Share Index of the Nigerian Stock Exchange during the period of the global financial crisis., The study uses quarterly time series data between 2007 and 2009 which were tested and found to be, stationary as well as cointegrated. Ordinary Least Square regression was used in the analysis and it was found, that there is a negative relationship between gross domestic product and stock market indices in Nigeria during this crisis period. It was recommended that there is heed to strengthen the regulation of the market in order to restore investor's confidence and cushion the effect of the meltdown on the economy.