Stock Market and Economic Growth: An Empirical Analysis for Nigeria

11 Pages Posted: 19 Jun 2019

See all articles by Uju Akpunonu

Uju Akpunonu

Chukwuemeka Odumegwu Ojukwu University

Uju

Chukwuemeka Odumegwu Ojukwu University

EthelMary O

Chukwuemeka Odumegwu Ojukwu University

Date Written: August 11, 2018

Abstract

The study examines the effect of stock market on economic growth in Nigeria from 1986-2013. The objective of the study is to evaluate the extent to which some selected stock market indicators affect economic growth in Nigeria using secondary data obtained from various issues of Central Bank of Nigeria (CBN) Statistical Bulletin, World Development Indicators (WDI), and Nigeria Stock Exchange Fact-book. Preliminary study was done using unit root test, Co-integration tests and granger causality test. Ordinary Least Square (OLS) technique was used for the analyses to test the hypothesis. The findings revealed strong positive correlation with market capitalization, all share index and economic growth while turnover ratio has weak correlation with economic growth. The study recommends that this sends signal to government and decision makers who will look for growth opportunities. Also more stock liberalization are required such that would boost investors confidence by enable them have access to well regulated financial market which would provide surest path to economic development.

Keywords: Stock Market, Market Capitalization, All share index, turn Over Ratio and Economic growth

Suggested Citation

Akpunonu, Uju and Muogbo,, Uju Sussan and Dim, EthelMary O, Stock Market and Economic Growth: An Empirical Analysis for Nigeria (August 11, 2018). Available at SSRN: https://ssrn.com/abstract=3402423 or http://dx.doi.org/10.2139/ssrn.3402423

Uju Akpunonu (Contact Author)

Chukwuemeka Odumegwu Ojukwu University ( email )

Uli, Anambra State
Nigeria

Uju Sussan Muogbo,

Chukwuemeka Odumegwu Ojukwu University ( email )

Uli, Anambra State
Nigeria

EthelMary O Dim

Chukwuemeka Odumegwu Ojukwu University ( email )

Uli, Anambra State
Nigeria

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