According to abiola and okoduwa 2008, the financial market consists of two major segments, the money market and the capital market. The capital market was set up to achieve specific objectives which would boost the economy such as encourage domestic savings and increasing the quantity and quality of investments. Exports and government revenues are driven largely by oil, while most nigerians work in agriculture. The research is basically to establish role played by the capital. Nbs, pwc analysis exports are likely to outpace imports on strong oil export revenues and shrinking import demand real gdp growth to reach 2. It is important that the government should implement policies that will make the market more efficient and reposition it for growth within the. Annual time series data were obtained from the central bank of nigeria statistical bulletin and securities and exchange commission statistical bulletin for the.
Stock market performance and economic growth in nigeria 1984. This paper seeks to examine the impact of the nigerian capital market on its economic growth from the period of 19902010. Ofurum et al effects of capital market components on economic growth in nigeria. Evidence from nigeria 1, oladipo t, bashorun, 2, tunde a, bakarearemu 1,department of finance, university of lagos, lagos, 2,department of economics, university of lagos, lagos, abstract. This study examined the impact of nigerian capital market on economic growth and development between 1990 and 2011. Impact of human capital development on economic growth in nigeria. Atje and jovanovic 1993 found in a crosscountry study of capital market and economic growth of 40 countries from 1980 to 1988 that there was a significant correlation between the average economic growth and capital market capitalization.
Economic growth gets a boost from high oil prices nigeria. This paper examines the link between capital market development and economic growth in nigeria. This paper examines the concept of capital market, the concept of economic growth and economic development, relationship between economic. Capital market, economic growth, market capitalization, capital formation 1. Evidence from nigeria data anne c maduka department of economics, anambra state university uli. Evidence from vecm approach abubakar hassan, omoshola d. Empirical analysis of the impact of capital market. In compiling the report, we have, where appropriate, compared the nigerian legal, regulatory. Secondary data were obtained from the central bank of nigeria, nigeria stock exchange and national bureau of statistics. The study is significant for policy formulation and implementation by government and other stakeholders of the nigerian stock market. This page provides nigeria gdp annual growth rate actual values, historical data, forecast, chart, statistics, economic.
Time series data was used and sourced from the cbn statistical bulletin and annual reports. The result of the study shows that the capital market in nigeria has the potentials of growth inducing, but it has not contributed meaningfully to the economic growth. To a great extent, the positive relationship between capital accumulation real economic growths has long been affirmed in economic theories anyanwu, 1993. Effects of capital market components on economic growth in. To investigate the direction of relationship that exist between financial restructuring. An overview of the nigerian economic growth and development.
The objective of this study is to examine the impact of capital market on economic growth in nigeria. This is plannedi9 to be achieved with the following specific objectives. The fundamental channels through which capital market is connected to the economy, economic growth and development can be outlined as follows. Appraisal of capital market efficiency on economic growth in nigeria. International journal of academic research in business. Stock market development and economic growth in nigeria. However, this study shall look at both the impact of human capital and health on economic growth in nigeria. Both banks and stock market promotes economic growth. Capital market as a veritable source of development in. The capital market variables captured in the model such as market capitalization, number of deals and value of transactions were all positive and significant in promoting economic growth in nigeria. The study will explore the impact or effectiveness of capital market instruments on nigerian economic growth.
Capital market and economic growth in nigeria covenant. Stock market volatility and economic growth in nigeria 1980. The impact of capital market on economic growth of nigeria investigates the activities of the capital market in accelerating a stable economic growth in nigeria. Pdf capital market and economic growth in nigeria semantic. The concept of human capital refers to the abilities and skills of human resources of a country, while human capital development refers to the process of acquiring and increasing the number of persons who have the skills, education and experience that are critical for economic. Pdf capital market development and economic growth in nigeria. The role of capital market on economic growth in nigeria. Levine and zervos 1998 posit that the level of financial intermediation is a good predictor of economic growth. This study examines the causal relationship between stock market performance and economic growth in nigeria for the period 1987 2014, using annual secondary data. He interpreted the result to mean that the nigerian stock market was unable to make significant contribution to rapid economic growth because of the existence of certain policies that blur the effectiveness of the vehicle or. Abstract virtually all aspects of human endeavor entail the use of money either self generated or borrowed. The stationarity of the variables were tested using.
To achieve this objective, an error correction model was. Also, most of the typically scanty empirical attempts have been, in the main, conducted at the crosscountry levels, thus, making it quite difficult to extrapolating to countryspecific cases. This study seeks to evaluate the contribution of capital market to the growth of nigerias economy. The implication of the results is that stock market dev elopment contributes significantly to economic growth in nigeria through the market liquidity based indicators total value of shares traded ratio and turn over ratio creating a feed back effect as growth in economic activity also stimulates the liquidity in the stock market. Arestis et al 2001 usa, uk, germany, france and japan. The nigerian capital markets official website of the. The capital market is a highly specialized and organized financial market and indeed essential agent of economic growth and development because of its ability to facilitate and mobilize saving and investment. Nigeria gdp annual growth rate 19822019 data 20202022. In recent years, all her efforts to grow the economy, nigerias rate of economic growth has remained very volatile and sluggish. Pdf this study examined the impact of capital market indicators on economic growth in nigeria from 19862015. This means that the performance of the stock market is an impetus for. The capital market drives any economy s economic growth and. Pdf impact of capital market on the economic growth in. Economic research and policy management, office of the chief economist, securities and exchange commission, abuja, nigeria.
Impact of capital market on economic growth of nigeria. In respect of the above, capital market which is a mechanism of fund provision and allotment is used as an insight to evaluate the economic rate of development of nigeria. Onwuka department of economics, nnamdi azikiwe university, awka. A cointegrating regression approach trillion before experiencing downward fluctuations. It is that junction that the researcher deemed it fit to adopt a though provoking topic as capital market in nigerians economic development. Capital market and economic growth of nigeria citeseerx. The nigerian capital market represents a small but growing proportion of the nations economy. The paper examined the effect of capital market on economic growth of nigeria as case study covering a period of 2001 2017. This study intended to find out the operations of the nigerian capital market and evaluate the performance of the capital market in relation to the economic growth in nigeria.
Chigbu federal university of technology owerri, nigeria and federal polytechnic nekede, owerri abstract the objective of this study is to examine the impact of capital market on economic growth in nigeria. Introduction human capital is recognized as an agent of national development in all countries of the world. This research work was embarked upon with a view to determine the impact of the capital market on the economic growth of nigeria. Department of accountancy, madonna university, okija campus, anambra state nigeria. It is of interest to nigeria and other third world countries to attain a steady economic growth rate, as this would enhance national development. Impact of capital market in the economic development of.
Jul 22, 2016 mobilising capital market financing for nigerias economic growth, is a subject that fills me with excitement and hope for the future of nigeria. Nigeria capital market operation and economic growth. Pdf the paper examined the effect of a well developed capital market on economic growth in nigeria. Impact of the nigeria capital market on the growth of. To assess financial restructuring, capital market and economic growth in nigeria.
The impact of the nigerian capital market on economic growth. Phd department of banking and finance faculty of management sciences ekiti state university, ado ekiti, nigeria pmb 5363, ado ekiti, nigeria email. This paper tries to determine whether there is any causal link between stock market performance and economic growth in nigeria. The empirical investigation of the impact of the capital market on the economic growth in nigeria shall be restricted to the period between 1986 and 2011 due to the nonavailability of some important data. Providing education and health services to people is one of the major ways of improving the quality of human resources. The study investigated the impact of capital market on the economic growth in nigeria. This study will aid our understanding of economic development via the insurance subsectors participation in. To a great extent, the positive relationship between capital accumulation real economic growths has long affirmed in economic theories anyanwu, 1993. Also, while workable policies should be put in place to bring about an overall economic growth, expenditures on health and public education should be. Financial market development and economic growth in nigeria. This study therefore examines the major economic growth determinants as well as the direction of causality that exists between economic growth and some selected economic growth indicators in nigeria, employing the johansen cointegration and granger causality tests. Assessment of financial restructuring and capital market on. Emerging capital markets all over the world have a history and nigeria is not in any way different. Consequently, government, at various points in time sought to promote an orderly growth and development of the market for viable investment opportunities.
The paper is an appraisal of the impact of capital market efficiency on economic growth in nigeria, using time series data on market capitalization, money supply, interest rate, total market. Pdf capital market development and economic growth in. The capital market is so vital to the development of any economy that no country can risk its existence without putting in place measures to regulate the activities of the market. Human capital development and economic growth in nigeria. This study seeks to determine the impact of capital market on economic growth in nigeria using using annual data from 1981 to 2010. Apart from being issues of social concern, both provide an economy. The vec causality test indicated a bidirectional causality between economic growth and capital market development in nigeria. Capital market connects the monetary sector with the real sector and therefore facilitates growth in the real sector and economic development. It is associated with substantial reduction on poverty and unemployment levels, and income inequality. An analysis of the nigerian capital market performance and economic growth in nigeria edame, greg e and okoro, uchenna department of economics, university of calabar, calabarnigeria.
Results show that a long run relationship exists between capital market measured by market capitalization, total new issues, value of transactions, and total listed equities and government stocks and economic growth proxy by gdp in nigeria. The project work contain chapter one to five for free. To encourage the growth of the pevc industry in nigeria we introduced new rules on private equity while lending support to the ministry of industry, trade and investment who recently inaugurated an. This paper examines the causal relationship between globalization and economic growth in nigeria from 1981 to 2012. Nigerias economy is facing very challenging times following over a decade of impressive above 7% growth rate, the economy has significantly slowed to only 2.
The capital market is an organized financial market highly specialized in the buying and selling of equity and dept instruments. The study adopts a timeseries research design relying extensively on secondary data covering 1985 2012. An analysis of the nigerian capital market performance and. The capital market is a highly specialized and organized financial market and indeed essential agent of economic growth because of its ability to facilitate and mobilize saving and investment. Capital accumulation and economic growth in nigeria. At this time, the nigeria government is intensifying efforts to boost the countrys economy, the need to research on the fact that led to economic growth in nigeria cannot be understated. The recommendations drawn from the study centered on revisiting the manpower needs of the various sectors of the economy.
The impact of the nigerian capital market on economic growth 19902010 f. Nigeria has enjoyed relatively strong economic growth over the past seven years but poverty is still a major concern. Economic growth is proxied by gross domestic product gdp while capital market performance is measured by market capitalization, total new issues, volume of transaction and listed equities. It also comes with reference and data for your reference. Capital market and economic growth in nigeria taiwo, j. The results show that there is a positive relationship between the stock market development and economic growth. A alani2 abstract the study examined the contribution of different measures of human capital development to economic growth in nigeria. The capital markets are important to the sustenance of an. Capital is the second most important factor of production after the entrepreneur, hence the study of the role of capital market in the economic development of nigeria, since the capital market is the only channel through which large and long term funds can be mobilized for any meaningful economic development. The ols is employed in estimating the model and the augmented dickeyfuller adf unit root test is used to examine the properties of the time series variables incorporated in this study. This paper examines the concept of capital market, the concept of economic growth and. Osinubi and amaghionyeodiwe 2003 examine the relationship between nigeria stock market and economic growth during the period 1980 to 2000, using ordinary least square regression. Chiwuba and amos, 2011 contend that capital market can affect economic development through the mobilization of longterm resources, the provision of liquidity, risk diversification, privatization. The nigerian economy and implications of the economic recovery and growth plan for the capital market.
Effect of capital market on economic growth and development of nigeria 2000 2017 okoye greg onuora, phd. For any country to be economically sound, she must experience a growing economic sector. This study is undertaken to examine the contribution of the capital market in the nigerian economic growth and development. Impact of capital market volatility on economic growth in. Economic growth and development involves an increase overtime of per capital real gross national product g. In capital market, the stock in trade is money which could be raised through various instruments under well governed rules and regulations. Capital market financing for nigerias economic growth the. View the role of capital market on economic growth in nigeria 1980. In the last two decades, studies on the capital market have received considerable attention from contemporary finance and economics literature resulting from its. The capital market is a highly specialized and organized financial market and indeed an essential agent of economic growth because of its abilityto facilitate and mobilize saving and investment.
The effect of capital market on economic growth in nigeria. This study was aimed at determining the relationship among gross domestic product, market capitalization and all share indexes. From 2014 to 2016, total market capitalization has been fluctuating between n16. For this study, the nigerian economy was viewed in terms of economic growth, while the performance of the stock market is an impetus for the growth and. Capital market performance and economic growth in nigeria. Wide consultation with a range of stakeholders was also critical for considering the implementation strategies for the report. The capital market in nigeria in historical perspective.
Impact of capital market on the economic growth in nigeria. Empirical analysis of the impact of capital market efficiency. The impact of the nigerian capital market on economic. Research journal of finance and accounting issn 22221697 paper issn 22222847. This study on the development of the capital market institution in an emerging economy like nigeria seeks to examine not only how it came to be established but also how this institution has evolved. Impact of capital market on the economic growth of nigeria.
The impact of capital market on the nigerian economy citeseerx. Effect of capital market on economic growth and development of. Adaramola banking and finance department, ekiti state university, ado ekiti, nigeria this paper seeks to examine the impact of the nigerian capital market on its economic growth from the period of 19902010. Nigeria capital market on economic growth between 1990 to 2011 and revealed that the nigeria benin journal of social sciences, vo lume 22, number 1, june 2015, 111 9.
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