Stock Market Performance, Foreign Direct Investment and Economic Growth in Nigeria after the introduction of Structural Adjustment Programme
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2018, Vol 8, Issue 12
Abstract
The study examined stock market performance, foreign direct investment and economic growth in Nigeria after the introduction of the Structural Adjustment Programme. Annual time series data over the period of 31 years (1986 to 2016) and Johansen Co-integration technique were used. Granger causality test was also employed to determine the direction of causality between stock market performance, foreign direct investment and economic growth in Nigeria. The results suggest that there is long-term co-integration among economic growth, foreign direct investment (FDI), stock market development and inflation. The long-term elasticity estimates of the stock market performance showed expected sign and was statistically significant. In the short-run, stock market has significant positive relation to economic growth. The impact of FDI on growth is also significant and positive. The results also indicate that the negative impact of inflation on economic growth is statistically significant . The empirical findings of the study reveal that stock market development and FDI inflows play vital roles in the process of economic growth in Nigeria. Result of the OLS technique indicates that FDI had positive but insignificant impact on economic growth in Nigeria during the period. Available records showed that the substantial inflow of FDI into Nigeria during the period of study did not yield the expected result of rapid economic growth due to over-concentration of FDI on the oil and gas sector.
Authors and Affiliations
Gilbert Deinde Ifarajimi
Keywords
Related Articles
- EP ID EP596977
- DOI 10.6007/IJARBSS/v8-i12/5385
- Views 105
- Downloads 0
Shari’ah-Compliant Trading: An Assessment of Current Practices in Nigeria
Despite the fact that Nigeria has a Muslim majority population, the shari’ah compliance of trading activities in the country do not seem to be carried along with the Islamic economic development reached at globally. This...
Needs Analysis of DoCtor WoRM’s Module in Improving Multiplication Skills among Year Four Low Achievers
Mathematics is one of the major subjects in primary school education in Malaysia. Among the basic arithmetic skills, single-digit multiplication is important as it is the basis for other mathematics operations. Neverthel...
Factors Affecting Human Resources Management Policy Implementation in Small and Medium Enterprises (SMEs) in Sri Lanka
Policy implementation in SMEs related to Human Resource Management in Sri Lanka is often ignored because the issues are indirect and hidden. The main objective of this paper to review and understand theories and models r...
Theoretical and Practical Matters Regarding the Price Determination in Commercial Contracts
In any contract, the price must be determined or at least determinable. The parties may specify in the contract the essential elements by which the price could be determined in the future. The determination of the price...
Malaysia Football Coaches: Development Characteristics
In this study, the defining development pathways of “A”, “B” and “C” licenced coaches in Malaysia, were examined from the perspective of identifying critical issues and challenges. This research was guided by principles...