The study examined stock market performance, foreign direct investment and economic growth in Nigeria after the introduction of the Structural Adjustment Programme. Annual time series data over the period of 31 years (1986 to 2016) and Johansen Co-integration technique were used. Granger causality test was also employed to determine the direction of causality between stock market performance, foreign direct investment and economic growth in Nigeria. The results suggest that there is long-term co-integration among economic growth, foreign direct investment (FDI), stock market development and inflation. The long-term elasticity estimates of the stock market performance showed expected sign and was statistically significant. In the short-run, stock market has significant positive relation to economic growth. The impact of FDI on growth is also significant and positive. The results also indicate that the negative impact of inflation on economic growth is statistically significant . The empirical findings of the study reveal that stock market development and FDI inflows play vital roles in the process of economic growth in Nigeria. Result of the OLS technique indicates that FDI had positive but insignificant impact on economic growth in Nigeria during the period. Available records showed that the substantial inflow of FDI into Nigeria during the period of study did not yield the expected result of rapid economic growth due to over-concentration of FDI on the oil and gas sector.
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In-Text Citation: (Ifarajimi, 2018)
To Cite this Article: Ifarajimi, G. D. (2018). Stock Market Performance, Foreign Direct Investment and Economic Growth in Nigeria after the introduction of Structural Adjustment Programme. International Journal of Academic Research in Business and Social Sciences, 8(12), 2044–2058.
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