ON STATISTICAL ANALYSIS ON INTER RELATIONSHIP BETWEEN CAPITAL MARKET INDEX, DIRECT CAPITAL INVESTMENT, FOREIGN DIRECT INVESTMENT AND GROSS DOMESTIC PRODUCT (A CASE STUDY OF NATIONAL BUREAU OF STATISTIC FROM 2008 - 2022)

ABSTRACT This project paper titled statistical analysis on “Statistical Analysis on Inter Relationship Between Capital Market Index, Direct Capital Investment, Foreign Direct Investment and Gross Domestic Product” (A case study of National Bureau of Statistics from 2008- 2022).The aim of this project work is analyzing the impact of capital market on economic growth in Nigeria through the following objectives: To examine if the selected variable have any significant relationship with economic growth as measure by GDP, To obtain a reliable model for describing the relationship among selected economic variable in Nigeria, To test for the multicollinearity among the explanatory variable,Based on the result obtained we conclude that there there is a no linear relationship between the three selected economical services sector and GDP, and the VIF values are (1.017, 1.023 and 1.033) respectively which are all less than 5, where therefore reject the null hypothesis and conclude that the independent variables are not collinear variables. This means that the three variables are not Strongly correlated with each other. Signifying that they all provide unique and independent information in explaining the variation in GDP. The Anova analysis shows the p-value is (0.002) which is less than our alpha value (0.05) we therefore reject the null hypothesis and conclude that, at least one of the coefficients is statistically significant which signifies that the model is statistically significant, indicating that the model is fit for prediction. Lastly the regression analysis shows which can be used to estimate or predict the GDP in Nigeria which is given as: GDP = 155.579-0.005DCI-0.005FDI=0.048CMI. The estimated value of GDP is (155.579) when all the independent variables are zeros or are at their starting points. This means that even when both the independent variable are zero, there is still a predicted baseline GDP value of (155.579).The study's findings lead to the conclusion that, all monetary variables or instruments exert a statistically insignificant beneficial impact on Nigeria's long-term economic growth. Consequently, the study suggests that monetary authorities emphasize employing a quality-based nominal anchor, primarily through the direct manipulation of those monetary variables and the promotion of exports, to bolster the value of the home currency. The present study investigates the impact of monetary policy on economic growth in Nigeria using the VIF model as the selected methodology. In contrast to previous research efforts, this study provides a more contemporary viewpoint. It investigates the notable monetary policy instruments.