CAPITAL MARKET AND ECONOMIC GROWTH IN NIGERIA
Abstract
The study critically examined the effect of capital market development on the economic growth in Nigeria. The specific objectives of the study are to determine the effect of market capitalization, new issue and all share index on Gross Domestic Product GDP in Nigeria. The study covers a scope of 23 year i.e. from 2000-2022. The study employs ex- post factor research design. The population of this study is Nigeria economy as a whole. This study utilizes secondary data sourced from various issues of Central Bank Of Nigeria Statistical Bulletin, Nigeria Exchange Group factor books, Security and Exchange Commission (SEC) market Bulletins. This study uses autoregressive distribution Lag (ARDL) regression to test the research hypothesis. This results shows that market capitalization has positive significant effect on GDP in Nigeria. New issues and all share index has a negative insignificant effect on the Gross Domestic Product in Nigeria.The study concludes that capital market development has a significant effect on the economic growth in Nigeria. The study recommends among other that government should remove impediments to stock market development in the form of tax, legal and regulatory barriers because they act as disincentives to investment in the capital market which has negative effects on most companies' market capitalization
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