Evaluation of Stock Market Development and its Contribution to Economic Growth in Nigeria
No Thumbnail Available
Files
Date
2018
Journal Title
Journal ISSN
Volume Title
Publisher
Faculty of Management Sciences, Ekiti State University, Ado-Ekiti, Nigeria
Abstract
Studies have been carried out on the impact of stock market development on economic growth across the globe but the findings remain inconclusive. This study therefore evaluates the contribution of stock market development to economic growth in Nigeria between the periods of 1986 to 2016. The study employed the method of short run error correction model (ECM) as analysis technique. The study revealed that only the banking sector development has a significant direct relationship with the economic growth of Nigeria at 10 level of significance while all other explanatory variables were not. Therefore. the study concluded there is no evidence that Nigerian stock. market development contributed to the economic growth. It is therefore recommended that (I) stock market growth strategy should be pursued and all impediments to its development be removed (2) regulators and operators in the stock. market should enhance the liquidity of the market (3) operators and participants should implement policy that will boost turnover ratio in the market.
Description
Keywords
Stock Market Development, Economic Growth, Market Liquidity, Market Turnover Ratio, Stock Market Size