This study examines the impact of capital market performance on economic growth of nigeria for the period 1983 2010. Pdf the paper examined the effect of a well developed capital market on economic growth in nigeria. To analyse the rate at which new stocks are issue on the capital market. Ewan et al 2009 appraise the impact of the stock market efficiency on the economic growth of nigeria using time series data from 1961 to 2004. Pdf the impact of the nigerian capital market on economic.
The objective of the study are to examine the impact of the capital market on the economy of nigeria, that is to evaluate the effect of market capitalization on the inflation rate, gross domestic product gdp, total number of new issues, transaction value, total listing and foreign direct investment fdi. The capital market is a highly specialized and organized financial market and indeed essential agent of economic growth because of its ability to facilitate and mobilize saving and investment. Nigerian capital market so that it could contribute significantly to the growth of. The nigerian capital markets official website of the. Impact of nigerian capital market capitalisation on the. This project seeks to examine the impact of the nigerian capital market on economic growth from the period of 20022010. Abstract this research work was embarked upon with a view to determine the impact of the capital market on the economic growth of nigeria. The impact of capital market on the nigerian economy citeseerx. The results also show, however, that growth in market capitalisation does not have significant impact on the economy in nigeria. From the result obtained, capital market has positive and significant impact on economic growth in nigeria. The impact of the nigerian capital market on economic growth 19902010 f. The impact of the nigerian capital market on economic growth. Effects of capital market components on economic growth in.
In addition, ewah et al 2009 appraised the impact of capital market efficiency on economic growth in nigeria, using time series data on market capitalization, money supply, interest rate, total market transaction and government development stock that ranges between 1961 to 2004. Capital market and economic growth in nigeria covenant. Although the overall effect of fdi on economic growth may not be significant. Ajide1 this paper investigates the role of frazer economic freedom index on fdigrowth relationship over the period spanning 1980 through 2010 using annual time series data. Results suggest that the determinants of fdi in nigeria are market size, infrastructure development and stable macroeconomic policy.
The capital market is a highly specialized and organized financial market and indeed essential agent of economic growth and development because of its ability to facilitate and mobilize saving and investment. A country specific study that incorporates the effect of these structural differences that characterize the development of the capital market among economies was. Impact of money market on nigeria economic growth mensch mind. Economic growth was proxied by gross domestic product while capital market performance was measured by market capitalization, total new issues, volume of transaction and listed equities. Stock market volatility and economic growth in nigeria. Fdi in nigeria contributes positively to economic growth. Impact of capital market volatility on economic growth in. Empirical analysis of the impact of capital market efficiency on economic growth and development in nigeria oluwatosin e. Evidence from nigeria 1, oladipo t, bashorun, 2, tunde a, bakarearemu 1,department of finance, university of lagos, lagos, 2,department of economics, university of lagos, lagos, abstract.
Studies by obamiro 2005, ezeoha et al 2009 show strong evidence of positive impact of the capital market on economic growth in nigeria. The aim of this study is to analyze he impact and benefit of the capital market in the realization of the insurance industry contribute to the economy. Impact of capital market in the economic development of. In light of the above mentioned facts, the question now. In compiling the report, we have, where appropriate, compared the nigerian legal, regulatory. Impact of capital market on the economic growth of nigeria. The study employed a time series data from 1970 to 1994. This research work was embarked upon with a view to determine the impact of the capital market on the economic growth of nigeria. Secondary source of data was employed in this study from 1986 to 2017 which were sourced from central bank of nigeria statistical bulletin 2017 published in 2018 and world development indicator published in 2019. Impact of capital market on economic growth of nigeria.
The economic growth was proxied by gross domestic product gdp while the capital market variables considered include. Economic outlook 3 contents theme 1 oil prices still lower for longer theme 2 economy growth gets a boost from high oil prices theme 3 inflation declines sharply, driven mainly by base effects theme 4 monetary policy rate set to fall, and then rise theme 5 governments fiscal deficit expands above budget. The capital market variables captured in the model such as market capitalization, number of deals and value of transactions were all positive and significant in promoting economic growth in nigeria. The impact of capital market and economic growth in.
The empirical investigation of the impact of the capital market on the economic growth in nigeria shall be restricted to the period between 1986 and 2011 due to the nonavailability of some important data. To assess the performance of the capital market in relation to the economic growth in nigeria. Annual time series data were obtained from the central bank of nigeria statistical bulletin and securities and exchange commission statistical bulletin for the. The capital market was set up to achieve specific objectives which would boost the economy such as encourage domestic savings and increasing the quantity and quality of investments. O department of accountancy osun state polytechnic, iree, nigeria adekanye taiwo department of banking and finance osun state polytechnic, iree, nigeria yusuf s. The impact of capital market on development of nigeria. Though the scope of the study was limited to the capital market, it is hoped that the exploration of this market will provide a broad view of the operations of the capital market. This means that the performance of the stock market is. This means that the performance of the stock market is an impetus for. Effect of capital market on economic growth and development of. Pdf impact of capital market on the economic growth in nigeria. Nigeria capital market operation and economic growth.
The study employs an enhanced version of the neoclassical growth model, also known as growth accounting framework, to incorporate other economic and financial variables such as capital market development indices, as well as some indices for. However, ezeoha et al 2009 reveal that while the stock market promotes. The objective of this study is to examine the impact of capital market on economic growth in nigeria. The study adopts a timeseries research design relying. This study therefore examines the major economic growth determinants as well as the direction of causality that exists between economic growth and some selected economic growth indicators in nigeria, employing the johansen cointegration and. It enables the country to achieve economic growth as capital formation is promoted through the capital market. This paper seeks to examine the impact of the nigerian capital market on its economic growth from the period of 19902010. Impact of capital market growth on economic growth and. Again, the capital market was instrumental to the initial 25banks that were able to meet the minimum capital requirement of n25 billion during the banking sector consolidation in 2005. Impact of capital market on the economic growth in nigeria. Wide consultation with a range of stakeholders was also critical for considering the implementation strategies for the report. Empirical analysis of the impact of capital market. The impact of capital market on economic growth in nigeria. The primary objective of the study is to evaluate the impact of capital market on development of nigeria economy.
They found that the capital market in nigeria has the potential of growth inducing but it has not contributed meaningfully to the economic growth of nigeria because of. In recent years, all her efforts to grow the economy, nigerias rate of economic growth has remained very volatile and sluggish. Impact of the nigeria capital market on the growth of. The research problem in recent times there has been a growing concern on the role of capital market in economic growth and thus the capital market has been the focus of economic policies and policy makers because of the perceived. Gdp was used as proxy for economic growth while government securities gs, corporate bondpreference shares cbps, and equities eqt where proxies for. The result of the study was that capital market development is negatively and significantly correlated with longrun growth in nigeria. Impact of nigeria capital market on economic growth. The impact of the nigerian capital market on economic.
This study examined the impact of nigerian capital market on economic growth and development between 1990 and 2011. Pdf capital market development and economic growth in. Theoretical literature on financial development and growth identifies three fundamental channels through which capital markets and economic growth may be. Determinants of economic growth in nigeria kazeem b. Existing companies, because of their performance will be able to expand their industries and also go in for diversification of business due to the capital market. Venture capital vc and private equity pe form another important asset class due to the impact they can have on economic growth, innovation and jobcreation.
Nigerian capital market to the growth of its economy but specifically looking at the relationships between capital market development indicators such as deposit mobilization, capital accumulation, labour supply, total listed stock market securities with economic growth in nigeria. The result also showed that there exists bidirectional causality between capital market development and economic growth. Capital market offers a variety of financial instruments that enable economic. This study examined the existence of longrun association between capital market components and economic growth in nigeria between 1981 and 2017. Data were sourced from central bank of nigeria statistical bulletin. This paper examines the link between capital market development and economic growth in nigeria.
The impact of foreign direct investment on economic growth. Openness to trade and available human capital, however, are not fdi inducing. This study seeks to determine the impact of capital market on economic growth in nigeria using using annual data from 1981 to 2010. Impact of money market on nigeria economic growth 19812016, download full project material from chapter one to five with reference.
International journal of academic research in business. Pdf impact of capital market on the economic growth in. Project topic impact of capital market instability on the. Impact of capital market volatility on economic growth in nigeria 1985 2016 doi. This study investigated the impact of foreign direct investment on economic growth in nigeria. Impact of capital market development on the growth of the. The study investigated the impact of capital market on the economic growth in nigeria. The capital market can affect economic development through the mobilization of long term resources, the provision of liquidity, risk diversification, privatization, securitization or risk transfers and determination of the cost of capital for project valuation chiwuba and amos.
Though the importance of stock market volatility on economic growth has received much attention, a highly inadequate number of research works have been done to investigate whether or not there is a relationship between stock market volatility and economic growth in the case of nigeria economies. Capital is the second most important factor of production after the entrepreneur, hence the study of the role of capital market in the economic development of nigeria, since the capital market is the only channel through which large and long term funds can be mobilized for any meaningful economic development. Adaramola banking and finance department, ekiti state university, ado ekiti, nigeria this paper seeks to examine the impact of the nigerian capital market on its economic growth from the period of 19902010. Atje and jovanovic 1993 found in a crosscountry study of capital market and economic growth of 40 countries from 1980 to 1988 that there was a significant correlation between the average economic growth and capital market capitalization. A multivariate regression approach was employed to estimate augmented growth models. It is on the premises that this research paper wishes to examine the impact of the nigeria capital market on economic growth and development from 1990 to.
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