Volume( 18) - Issue( 1) 2021 pp 134-145 DOI: -

CAPITAL MARKET AND ECONOMIC DEVELOPMENT OF NIGERIA

Title

CAPITAL MARKET AND ECONOMIC DEVELOPMENT OF NIGERIA

Abstract

The study focuses on the capital market development as it relates to  the economic growth on the  Nigeria economy  between 2002 and 2018. To achieve this objective, multiple regression analysis was used to analyze the data and an error correction model was estimated for economic growth using Vector Error Correction techniques and Co integration of the variables were checked with the help of E-view 7.0 statistical software. It was revealed that market capitalization rate, new issues, total value of listed securities, and total listing are significant macroeconomic Determinant factors of economic development in Nigeria within the scope covered. The study then concluded that the variables used for the study have played a significant role in the capital market development influence on Nigeria’s economic growth. To enhance the development of the Nigerian capital market as the engine of economic growth, it was recommended that the government should maintain state of the art technology that will ensure a free flow of information in the market to attract more investors as well as increase new issues and volume of transactions which will in turn increase the quantum of market capitalization. The government should remove impediments to stock market development in the form of tax, legal and regulatory barriers because they are sometimes disincentives to investment, the ease with which investors can purchase and sell shares, as this will increase the value of traded securities and need for improving declining market capitalization by encouraging more foreign investors to participate in the market. 

Keywords

Capital market, Economic development, Error correction