Capital Market Indicators and Economic Growth in Nigeria

  • Oyegun Gbenga Department of Economics, Wellspring University, Benin City, Edo State
  • Idogun Idowu Samuel University of Benin, Benin City, Edo State
DOI: https://doi.org/10.51699/cajitmf.v4i12.656
Keywords: Capital Market, Indicators, Economic Growth and Turnover

Abstract

This paper focused on capital market indicators and economic growth in Nigeria. It specifically examined influence of market capitalization, new issues, stock market prices, value of transactions and market turnover on economic growth. It is a time series study covering a period of thirty three years (1990-2022). Secondary source of data collection was employed. Data were obtained from Central Bank Statistical bulletin and Nigerian Stock Exchange Fact-Book. Data was analyzed using inferential statistics. The inferential statistics consisted of correlation matrix, Augmented Dickey Fuller and Phillips Peron, Unit Roots Tests, Co-Integration and Error Correction Method (ECM). This paper revealed that Market capitalization, stock prices and market turnover has significant positive effect on Economic growth, while, new issue and value of transaction has negative and no significant influence on economic growth in Nigeria. The paper therefore recommended the need for the capital market or Nigerian Stock Exchange to increase the market capitalization since it enhances economic growth. The capital market should encourage quoted firms to regularly release new issues in the market since it can pave way or access to funds to businesses which can influence economic growth. The Nigerian Stock Exchange should ensure that stock price of quoted firm increases as the firm grows such that information provided about the firm stock prices can give signals to investors.

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Published
2023-12-07
How to Cite
Oyegun Gbenga, & Idogun Idowu Samuel. (2023). Capital Market Indicators and Economic Growth in Nigeria. Central Asian Journal of Innovations on Tourism Management and Finance, 4(12), 37-46. https://doi.org/10.51699/cajitmf.v4i12.656
Issue
Vol. 4 No. 12 (2023): December 2023
Section
Articles

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