{"id":3500,"date":"2022-11-21T02:58:52","date_gmt":"2022-11-21T02:58:52","guid":{"rendered":"https:\/\/ejfms.deqepub.org\/?post_type=journal_article&p=3500"},"modified":"2022-11-21T02:58:52","modified_gmt":"2022-11-21T02:58:52","slug":"capital-market-and-economic-growth-evidence-from-nigeria","status":"publish","type":"journal_article","link":"https:\/\/deqepub.org\/ejfms\/journal_article\/capital-market-and-economic-growth-evidence-from-nigeria\/","title":{"rendered":"Capital Market and Economic Growth: Evidence from Nigeria"},"content":{"rendered":"

ABSTRACT<\/strong><\/p>\n

This research work investigated the EFFECT OF CAPITAL MARKET ON ECONOMIC GROWTH OF NIGERIA. It aimed at examining how the capital market has contributed to the economic growth of Nigeria. The study made use of yearly data gotten from 2019 CBN statistical bulletin spanning from 1985-2018. 2018 was chosen as the base year in order make use of current data and to enhance the study and analysis of current trends in the economy. The study made use of ex-post facto research design which is quasi \u2014experimental study that examines how independent variables affect a dependent variable. The data used in this study is an existing data. ARDL Model Estimation and Linear regression analysis method was adopted because both has the peculiarity of giving the signs of the coefficients. It\u2019s relevant in testing the entire hypothesis. More so, the analysis was carried with the help of E-view version 10 software package. The result gotten provided evidence on the three independent variables; market capitalization, all share index and volume of stock traded in explaining and predicting economic growth in Nigeria. The results showed that the three variables have played a significant role in influencing the capital market performance on Nigeria\u2019s economic growth. This further indicates that a one percent decrease in GDP total in Nigeria is due to 27% decrease in Market Capitalization. The results also show that there also exists a significant and negative relationship between all shares index and gross domestic product. Thus, indicating that a one percent decrease in GDP total in Nigeria economic growth is due to 20% decrease in All Share Index. lastly, results also shows that there exists a significant positive relationship between volume of stocks traded on the exchange and the gross domestic product. It concludes that the volume of transaction is an important factor in determining the magnitude of trading of shares in the capital market and it goes a long way in improving the performance of the market and as well increases the efficiency of the market which invariably improves the economic growth of Nigeria.<\/p>\n

Keywords: <\/strong>Capital Market; Market Capitalization; All Share Index<\/em><\/p>\n

Authorship
\n<\/strong>Iyke-Ofoedu, Maureen Ifeoma PhD1<\/sup>; Ihegboro, Ifeoma Maria PhD2<\/sup>; Uzochukwu, Adaora Chinelo3<\/sup>; Obiora-okafo, Chinedu Afamefuna4<\/sup><\/p>\n

DOI: 10.5281\/zenodo.7340089<\/a>\u00a0 | FULL PDF<\/a><\/p>\n","protected":false},"author":1,"template":"","journal_article_cats":[172],"class_list":["post-3500","journal_article","type-journal_article","status-publish","hentry","journal_article_cat-vol-6-no-4"],"yoast_head":"\nCapital Market and Economic Growth: Evidence from Nigeria - European Journal of Finance and Management Sciences<\/title>\n<meta name=\"description\" content=\"This research work investigated the EFFECT OF CAPITAL MARKET ON ECONOMIC GROWTH OF NIGERIA. It aimed at examining how the capital market has contributed to the economic growth of Nigeria. The study made use of yearly data gotten from 2019 CBN statistical bulletin spanning from 1985-2018. 2018 was chosen as the base year in order make use of current data and to enhance the study and analysis of current trends in the economy. The study made use of ex-post facto research design which is quasi \u2014experimental study that examines how independent variables affect a dependent variable. The data used in this study is an existing data. ARDL Model Estimation and Linear regression analysis method was adopted because both has the peculiarity of giving the signs of the coefficients. It\u2019s relevant in testing the entire hypothesis. More so, the analysis was carried with the help of E-view version 10 software package. The result gotten provided evidence on the three independent variables; market capitalization, all share index and volume of stock traded in explaining and predicting economic growth in Nigeria. The results showed that the three variables have played a significant role in influencing the capital market performance on Nigeria\u2019s economic growth. This further indicates that a one percent decrease in GDP total in Nigeria is due to 27% decrease in Market Capitalization. The results also show that there also exists a significant and negative relationship between all shares index and gross domestic product. Thus, indicating that a one percent decrease in GDP total in Nigeria economic growth is due to 20% decrease in All Share Index. lastly, results also shows that there exists a significant positive relationship between volume of stocks traded on the exchange and the gross domestic product. It concludes that the volume of transaction is an important factor in determining the magnitude of trading of shares in the capital market and it goes a long way in improving the performance of the market and as well increases the efficiency of the market which invariably improves the economic growth of Nigeria.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/deqepub.org\/ejfms\/journal_article\/capital-market-and-economic-growth-evidence-from-nigeria\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Capital Market and Economic Growth: Evidence from Nigeria\" \/>\n<meta property=\"og:description\" content=\"This research work investigated the EFFECT OF CAPITAL MARKET ON ECONOMIC GROWTH OF NIGERIA. It aimed at examining how the capital market has contributed to the economic growth of Nigeria. The study made use of yearly data gotten from 2019 CBN statistical bulletin spanning from 1985-2018. 2018 was chosen as the base year in order make use of current data and to enhance the study and analysis of current trends in the economy. The study made use of ex-post facto research design which is quasi \u2014experimental study that examines how independent variables affect a dependent variable. The data used in this study is an existing data. ARDL Model Estimation and Linear regression analysis method was adopted because both has the peculiarity of giving the signs of the coefficients. It\u2019s relevant in testing the entire hypothesis. More so, the analysis was carried with the help of E-view version 10 software package. The result gotten provided evidence on the three independent variables; market capitalization, all share index and volume of stock traded in explaining and predicting economic growth in Nigeria. The results showed that the three variables have played a significant role in influencing the capital market performance on Nigeria\u2019s economic growth. This further indicates that a one percent decrease in GDP total in Nigeria is due to 27% decrease in Market Capitalization. The results also show that there also exists a significant and negative relationship between all shares index and gross domestic product. Thus, indicating that a one percent decrease in GDP total in Nigeria economic growth is due to 20% decrease in All Share Index. lastly, results also shows that there exists a significant positive relationship between volume of stocks traded on the exchange and the gross domestic product. It concludes that the volume of transaction is an important factor in determining the magnitude of trading of shares in the capital market and it goes a long way in improving the performance of the market and as well increases the efficiency of the market which invariably improves the economic growth of Nigeria.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/deqepub.org\/ejfms\/journal_article\/capital-market-and-economic-growth-evidence-from-nigeria\/\" \/>\n<meta property=\"og:site_name\" content=\"European Journal of Finance and Management Sciences\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/deqepub.org\/ejfms\/journal_article\/capital-market-and-economic-growth-evidence-from-nigeria\/\",\"url\":\"https:\/\/deqepub.org\/ejfms\/journal_article\/capital-market-and-economic-growth-evidence-from-nigeria\/\",\"name\":\"Capital Market and Economic Growth: Evidence from Nigeria - European Journal of Finance and Management Sciences\",\"isPartOf\":{\"@id\":\"https:\/\/deqepub.org\/ejfms\/#website\"},\"datePublished\":\"2022-11-21T02:58:52+00:00\",\"description\":\"This research work investigated the EFFECT OF CAPITAL MARKET ON ECONOMIC GROWTH OF NIGERIA. It aimed at examining how the capital market has contributed to the economic growth of Nigeria. The study made use of yearly data gotten from 2019 CBN statistical bulletin spanning from 1985-2018. 2018 was chosen as the base year in order make use of current data and to enhance the study and analysis of current trends in the economy. The study made use of ex-post facto research design which is quasi \u2014experimental study that examines how independent variables affect a dependent variable. The data used in this study is an existing data. ARDL Model Estimation and Linear regression analysis method was adopted because both has the peculiarity of giving the signs of the coefficients. It\u2019s relevant in testing the entire hypothesis. More so, the analysis was carried with the help of E-view version 10 software package. The result gotten provided evidence on the three independent variables; market capitalization, all share index and volume of stock traded in explaining and predicting economic growth in Nigeria. The results showed that the three variables have played a significant role in influencing the capital market performance on Nigeria\u2019s economic growth. This further indicates that a one percent decrease in GDP total in Nigeria is due to 27% decrease in Market Capitalization. The results also show that there also exists a significant and negative relationship between all shares index and gross domestic product. Thus, indicating that a one percent decrease in GDP total in Nigeria economic growth is due to 20% decrease in All Share Index. lastly, results also shows that there exists a significant positive relationship between volume of stocks traded on the exchange and the gross domestic product. It concludes that the volume of transaction is an important factor in determining the magnitude of trading of shares in the capital market and it goes a long way in improving the performance of the market and as well increases the efficiency of the market which invariably improves the economic growth of Nigeria.\",\"breadcrumb\":{\"@id\":\"https:\/\/deqepub.org\/ejfms\/journal_article\/capital-market-and-economic-growth-evidence-from-nigeria\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/deqepub.org\/ejfms\/journal_article\/capital-market-and-economic-growth-evidence-from-nigeria\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/deqepub.org\/ejfms\/journal_article\/capital-market-and-economic-growth-evidence-from-nigeria\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/deqepub.org\/ejfms\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Capital Market and Economic Growth: Evidence from Nigeria\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/deqepub.org\/ejfms\/#website\",\"url\":\"https:\/\/deqepub.org\/ejfms\/\",\"name\":\"European Journal of Finance and Management Sciences\",\"description\":\"\",\"alternateName\":\"DEQE PUBLICATIONS\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/deqepub.org\/ejfms\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Capital Market and Economic Growth: Evidence from Nigeria - European Journal of Finance and Management Sciences","description":"This research work investigated the EFFECT OF CAPITAL MARKET ON ECONOMIC GROWTH OF NIGERIA. 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