Volume: Vol. 9 No. 2 | Page: 47-60
Idachaba Odekina Innocent, Olukoton G. Ademola Ph.D.
IMPACT OF STOCK MARKET PERFORMANCE ON THE ECONOMIC GROWTH OF NIGERIA
Abstract:

This study investigates the impact of stock market performance on the economic growth of Nigeria. Gross domestic product was used as proxy of economic growth while All-Share Index, market capitalisation and total securities listed were used as proxies of stock market performance. The study employed time series annual data from 1980 to 2016, which constitute 36 years’ observations. Multiple regression analysis and Vector Error Correction Model (VECM) were used to analyse the data. The result showed that ASI, MCAP and TSL have positive and significant impact on GDP of Nigeria. The study also revealed that stock market capitalisation had the highest short-run and long-run positive impact on economic growth while total listed securities had the least. In view of this finding, the study recommends that the Nigerian stock market operators, investors and government should reposition the market and implement economic policies that can enhance the stock market in order to attract more investment for economic development. Further studies are also needed to assess the impact of stock market performance on economic growth.

Keywords: Nigeria Stock Market performance, Economic growth, Vector error correction model.
Citation: Idachaba Odekina Innocent, Olukoton G. Ademola Ph.D. (2017). IMPACT OF STOCK MARKET PERFORMANCE ON THE ECONOMIC GROWTH OF NIGERIA. African Journal of Educational Technology, Vol. 9 No. 2, 47-60.
Download Full Article