International Journal of Academic Research in Business and Social Sciences

search-icon

Effect of Capital Market on Economic Growth and Development of Nigeria (2000 - 2017)

Open access
The paper examined the effect of capital market on economic growth of Nigeria as case study covering a period of 2001 – 2017. The study used time series data in order to capture capital market revenue covering the period under review. The study employed ordinary least squares regression method to analyse the data obtained from the CBN statistical bulletin and World Bank. The study found that there was no significant positive relationship among some indices of economic growth and Capital Market in Nigeria. Relationship between transportation and capital market revenue; growth rate in GDP and capital market revenue were not significant; however adequate security and capital market revenue indicate positive significant relationship. The study recommends that power sector of the economy, Transportation facilities such as good road networks, availability of internet services, favourable governmental policies devoid of political selfish interest in addition to adequate security should be made available in order to make capital market function optimally and yield the expected revenue that will boost the economy.
Adegbaju, A. A and Olokoyo, F. O (2008): “Recapitalization and banks performance: A case study of Nigerian banks”. African Economic and Business Review Vol. 6 No.1
Alie, H. I. (1984): “The Nigerian Stock Exchange: Historical perspective, Operations and Contributions to Economic Development” Central Bank of Nigeria Bullion, Silver Jubilee edition vol. II pp. 65-69
Alile, H.I (1984): Banking Sector Reforms and Bank Consolidation: Conceptual Framework. CBN Bullion, 29(2):3-10
Ariyo, A, Adelegan, O (2005): “Assessing the impact of capital market Reforms in Nigeria an incremental Approach”. A paper presented at the 46th annual conference of the Economic Society in Lagos.
Aurangzeb. C. (2012). “Contributions of banking sector in economic growth in Pakistan” A Journal of Business. Economic and Finance review Vol.2 (6) pp. 45-54
Babalola, J. A and Adegbite, M.A (2000) “The performance of Nigerian Capital Market Since Deregulation in 1986” CBN Economics and Financial Review, Vol,39 No. 1
Balogun, E.D (2007). “Banking reforms and the Nigeria economy performance, pitfalls and future policy options MPRA paper No. 3804.
Bitzenis, A. and Misic, A. (2008) “Evaluating the banking reforms in Serbia using survey results”. A journal of Economics and Finance, Vol 25 No 1 pp 49-71.
Boyd, J.H and Runkle, D.E. (1993) “Size and Performance of Banking Firms: Testing the Predictions of Theory” Journal of Monetary Economics, 31, pp. 47-67.
Demirgüç-Kunt, A. and Levine, R (1996): “Stock Market, Corporate Finance and Economic Growth: An Overview” The World Bank Review 10(2):223-239.
Ewah S. O. E, Essang A.E, & Bassey J. U (2009). Appraisal of Capital Market efficiency on economic growth in Nigeria.
Ezirim, C.B and Moughalu, M. I (2004). “Financial reforms and commercial banks operations in Nigeria. A comparison of two decades. Union digest, Vol. 8 No. 2, June P 62-81.
Granger, C.J (1969) “Investigating Causal Relations by Econometric models and Cross-Spectral models. Econometrica. 424-438.
Harris, R.D. (1997). “Stock markets and development: A re-assessment of European Economic”. Review, 1, 136-139.
King, R. g. and Levine, R. (1993) “Finance and Growth: Schumpeter Might be Right, Quarterly Journal of Economics. 108, 717-737.
Lemo, T (2005): Regulatory Oversight and Stakeholder Protection. A paper presented at the BGL Mergers and Acquisitions Interactive seminar held at Eko Hotels and suites, Victoria Island, June 24.
Levine, R. and Zervos, S (1996): “Stock Market Development and Long-run Economic Growth” The World bank Review 10(2):
Nigerian Stock Exchange fact books2001-2010.
Nigerian Stock Exchange Annual Accounts 2001-2010.
N’zue, F. (2006) “Stock Market Development and Econmic growth: Evidence from CoteD’Ivore” African Development review, 18(1) pp 123-145
Obadan, M.I (1998): Capital market and Nigeria’s economic Development. Presidential address presented at the 1 – day seminar of the Nigerian Economic Society at the Institute of International Affairs.
Okorie, A.U. (2005) “Banking Sector reforms and bank consolidation: The Malaysia Experience. CBN publication Vol 29 No 2 pp12-16.
Samuel, M.N and Emeka, J.O (2009) “Financial deepening and economic development of Nigeria. An Emperical investigation.
Soludo, C.C (20040: “Consolidating the Nigerian Banking Industry to Meet the Development Challenges of the 21st Century” Address at the Special Meeting of the Bankers Committee, Abuja.

In-Text Citation: (Onuora, 2019)
To Cite this Article: Onuora, O. G. (2019). Effect of Capital Market on Economic Growth and Development of Nigeria (2000 - 2017). International Journal of Academic Research in Business and Social Sciences, 9(2), 211–220.