THE IMPACT OF CAPITAL MARKET ON ECONOMIC GROWTH IN NIGERIA

ABSTRACT

This study seeks to examine the impact of the Nigerian capital market as a tool for economic growth from the period of 1982-2016. The study has its main objectives. The ascertainment of the effect of capital market activities on economic growth with the specific objectives of one, examine the impact of market capitalization on economic growth in Nigeria. The study revises Gross Domestic Product on All Share Index, Value of Transaction and Market Capitalization which are indices of Capital Market activities in Nigeria. The sample period & spans between 1982 and 2016 and the studys data were obtained from secondary source of the Central Bank of Nigeria Statistical Bulletin. The Augmented Dickey Fuller test of unit root was used to test the time series data, the ordinary least square method using E-view statistical package was used to run the regression and all tests were at 5% level of significance. The exogenous variables of Market Capitalization was found to have a positive relationship with Gross Domestic Product, however, the variable of value of transaction has a negative relationship with Gross Domestic Product.

TABLE OF CONTENTS

ContentsPage

Title Pagei

Certification ii

Approval Pageiii

Dedicationiv

Acknowledgementv

Table of Contentsvi

Abstractvii

CHAPTER ONE

1.1Background to the study1

1.2  Statement of Research Problem 

1.3  Research Question

1.4 Objectives of the Study 

1.5  Research Hypothesis 

1.6 Significance of the Study

1.7  Scope of the Study

1.8 Definition of terms

CHAPTER TWO: LITERATURE REVIEW

2.1 Conceptual Review 

2.1.2 The Role of Capital Market 

2.1.3 Contribution of the capital market to socio-economic development of Nigeria 

2.1.4. Financing Government's Infrastructural Projects 

2.1.5Privatization of State Owned Enterprises (SOEs) 

2.1.6Bank Recapitalization and Consolidation in Nigeria 

2.1.7 Analysis of the Nigerian Capital Market Performance 

2.1.8 Total New Issues 

2.1.9  Market Capitalization 

2.1.10 Listed Securities 

2.1.11 Value of Transactions 

2.1.12  The Nigerian Stock Exchange (NSE) 

2.1.13 Securities and Exchange Commission (SEC) 

2.1.14 The Second -Tier Securities Market 

2.1.15 Concept of Economic Growth 

2.1.16 Development in the Nigerian Capital Market 

2.1.17 The Prospect for the Future 

2.2 Empirical Review 

CHAPTER THREE: RESEARCH METHODOLOGY 

3.1Research Design

3.2Sample Size and Its Determination

3.3Sources of Data Collection

3.4Model Specification

3.5Limitations of the Methodology

CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION

4.0Data Analysis and Interpretation

4.1Unit Root Analyses

4.2Regression Results

4.3Test of Hypotheses

4.4Implications of Findings

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1Summary

5.2Conclusions

5.3Recommendation