Impact Of Stock Market Performance On Economic Growth In Nigeria Over The Period, 1985-2017

Grace Chinyere Eje

Abstract


This paper investigated the impact of stock market performance on economic growth in Nigeria over the period, 1985-2017. The specific objectives of the study to (i) determine the impact of stock market capitalization on economic growth, (ii) assess the impact of stock market turnover on economic growth, and (iii) examine the impact of stock market returns on economic growth in Nigeria. Using time series data from the Central Bank of Nigeria (CBN) Statistical Bulletin, 2017, the study employed the error correction model (ECM) technique in estimating our specified models. We specifically investigated both direction and magnitude of impact of stock market performance (as proxied by market capitalisation, stock market turnover and stock market returns) on economic growth over the sample period covered by the study. Our main findings indicate that that market capitalisation had positive and significant impact on economic growth in Nigeria. Similarly, stock market turnover ratio and stock market returns were found to exert positive and significant influence on economic growth. We therefore infer that the respective outcomes stock market performance supports the position of theoretical expectation that stock market performance should be positively related to economic growth. Moreover, for each of our estimated models, we found that stock market performance is jointly significant in explaining economic growth in Nigeria over the period of the study.


Keywords


Stock Market,Performance,Economic Growth,Nigeria, 1985-2017

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References


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DOI: http://dx.doi.org/10.52155/ijpsat.v32.2.4347

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