Journal of Emerging Trends in Economics and Management Sciences: Home

Article Title:
The Growth Impact of the Capital Market in Nigeria
by Dr. Isaac Azubuike Ogbuji, Dr. Charles Ogboi, Dr. Oke, Mautin. D, and Prof. Esther, F.

Abstract:
The study empirically investigated the impact of the capital market on economic growth in Nigeria. Time series data from 1981 to 2016 were obtained from the Central Bank of Nigeria Statistical Bulletin (CBN, 2017) and the Securities and Exchange Commission Statistical Bulletin (SEC, 2017). The study employed the Ordinary Least Square (OLS) technique to determine the estimates of the specified parameters. The regression result revealed that new issues and market capitalization have positive and significant impact on economic growth in Nigeria while all share index and stock market turnover have positive but insignificant impact on economic growth in Nigeria. The result further suggests that the value of transaction has a negative impact on economic growth in Nigeria. The study therefore concludes that the capital market has positive but insignificant impact on economic growth in Nigeria. The study recommends that the CBN should initiate policies that will inject more liquidity into the Nigerian capital market that are capable of spurring significant economic growth.

Keywords: Capital Market, Financial Markets, Economic Growth, OLS, ARCH Effect

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