Impact of Capital Market on Economic Growth in Nigeria
John N. O Ibe FMFMI PhD
Department of Banking and Finance
Faculty of Management Sciences
Ebonyi State University
Abakaliki
And
B. I. Owo PhD
Department of Accountancy/Banking and Finance
Ebonyi State University
Abakaliki
Abstract
The topic, impact of capital market on economic growth in Nigeria, is aimed at analysing the Nigeria market with the views of expossing all the necessary problems and prospects. Two objectives and two research hypotheses guided the study:there is no positive relationship between the real domestic product and market capitalization; the buyers and sellers securities have no potential influence on economic growth. The methodology used for the analysis was co-integration weak errogeneity and simultaneous error corrolation modeling. This study found that there exists positive relationship between the real domestic product and the market share index as well as market capitalization. Secondly the study discovered that an increase in total market share index and market capitalization will bring about a relative increase in real GDP.
Based on these findings, the study recommends the following among others: that Nigerian government should hurry to remove all the bottlnecks in the capital market; that it is time for Nigerian government to stop the policy inconsistences and pronouncements to enable the market grow and the need to avoid pressure from banks.
Key words: Economic growth, Capital market, Market capitalization, real domestic product, buyers and sellers securities, market share and market share index…………….. CONTINUE READING