ECONOMETRICS ANALYSIS OF IMPACT OF CAPITAL MARKET ON ECONOMIC GROWTH IN NIGERIA (1971-2010)

Journal Title: Asian Economic and Financial Review - Year 2013, Vol 3, Issue 1

Abstract

The stock market is a common feature of a modern economy and it is reputed to perform some necessary functions, which promote the growth and development of the economy. This study examines whether or not stock market promotes economic growth in Nigeria. To achieve this objective, ordinary least square regression (OLS) was employed using the data from 1971-2010. The result indicated that there is a positive relationship between economic growth and all the stock market development variables used. With 97% R-squared and 95% adjusted R-squared, the result showed that economic growth in Nigeria is adequately explained by the model for the period between 1971 and 2010.By implication 95% of the variation in the growth of economic activities is explained by the independent variables. The result of the study, which established positive links between the stock market and economic growth, suggests the pursuit of policies geared towards rapid development of the stock market. Also, all sectors of the economy should act in a collaborative manner such that the optimum benefits of linkages between the stock market and economic growth can be realized in Nigeria.

Authors and Affiliations

Owolabi A| Department of Banking and Finance, the Federal Polytechnic, Ado – Ekiti Nigeria, Ajayi N. O| Department of Business Administration and Management, the Federal Polytechnic, Ado – Ekiti, Nigeria

Keywords

Related Articles

AN ANALYSIS FOR CREDIT RATING AND MOMENTUM STRATEGY

In recent years, investors are increasingly concerned about whether the credit risk will affect the return on investment. This paper discusses the credit rating and momentum investment strategy relationship. The research...

RENMINBI AS NUMBER TWO IN EAST ASIA

This paper investigates the emerging influence of the Chinese renminbi on the exchange rate movements of East Asian currencies. China stopped pegging her currency to the US dollar and moved into a managed floating exchan...

THE TAIWANESE BUSINESSMEN ASSESS THE INVESTMENT ENVIRONMENT OF CHINA – CONSTRUCTION AND APPLICATION OF PR AHP PROGRAM

The economy of China has been rapidly growing in recent years. One of the important reasons is that there are a large number of foreign capital investments made in China. Creating a good investment environment in order t...

PRIVATE INSURANCE AND INCOME INEQUALITY IN IRAN

This study surveys the impact of private insurance on income distribution. For this purpose, the panel data of the Iran?s provinces, during 2000 to 2012, has been used. The Provincial data has been gathered for 11 divide...

ECONOMIC PROSPECTS AND PROBLEMS OF CANE BASED FURNITURE ENTERPRISES AS FAMILY BUSINESS AND THEIR BUSINESS TRENDS IN BANGLADESH

Cane based enterprise is one of the most flourished business in the northeastern region of Bangladesh. The purpose of the present study is to observe the pattern of production of cane based furniture in Sylhet city, iden...

Download PDF file
  • EP ID EP1880
  • DOI -
  • Views 396
  • Downloads 39

How To Cite

Owolabi A, Ajayi N. O (2013). ECONOMETRICS ANALYSIS OF IMPACT OF CAPITAL MARKET ON ECONOMIC GROWTH IN NIGERIA (1971-2010). Asian Economic and Financial Review, 3(1), 99-110. https://europub.co.uk/articles/-A-1880