The Impact of Capital Market on Economic Growth in Nigeria

ABSTRACT

The broad objective of this study  examine the impact of capital market on economic growth in Nigeria while specific objective examine the impact of foreign capital inflow  on economic growth in Nigeria assess the effect of stock market price on economic growth in Nigeria and Investigate the impact of  price of securities on economic growth in Nigeria. To achieve this objective secondary data were used and were extracted from central bank of statistical bulletin from 2009-2021 and The Pearson’s correlation coefficient was used to determine the reliability while Correlation Coefficient (R) was used to measure the degree of association between the variables i.e. the extent to which the variables are related.. Base on the finding The result of the correlation analysis as displayed above shows a correlation coefficient of 0.7212, indicating a very strong positive relationship between foreign capital inflow and gross domestic product; a correlation coefficient of 0.8798, indicating a moderate positive relationship between price of securities  and gross domestic product; a correlation coefficient of 0.7213, indicating a moderate positive relationship between  gross domestic product foreign capital inflow ; a correlation coefficient of 0.9562, indicating a very strong positive relationship between foreign cash inflow  and price of securities ; and a correlation coefficient of 0.9567, indicating a moderate positive relationship between stock market price and price of securities. Therefore, base on the findings we made recommendation that Government should expand the technological based of the Nigerian capital market in order to further improve transactions and dealings, which could enhance internationalization and competitiveness of the market and regulatory body like security and exchange commission (SEC) should improve its supervisory roles towards reducing shoddy and unethical dealings in the Nigerian capital market.

TABLE OF CONTENTS

Cover page 

Title 

Declaration………………………………………………………………………………………………………………………………iii

Certification…………………………………………………………………………………………………………………………….iv

Dedication……………………………………………………………………………………………………………………………….v

Acknowledgement………………………………………………………………………………………………………………….iv

Table of Contents………………………………………………………………………………………………………………

Abstract…………………………………………………………………………………………………………………………………

CHAPTER ONE: INTRODUCTION              PAGES

1.1Background of the study 1-3

1.2Statement of the problem  4-5

1.3Research question6

1.4Objective of the study           6

1.5Hypothesis of  the study7

1.6Justification for the study7-10

1.7Scope of the Study8

1.8Operational definition of terms8

CHAPTER TWO: LITERATURE REVIEW

2.1Conceptual Review           9-30

2.1.1      Conceptual Framework31

2.2   Empirical Review32-34

2.3 Theoretical Review 34-40

2.3.1Theoretical Framework 41-42

CHAPTER THREE: METHODOLOGY

3.0    Introduction 43

3.1 Area of Study 43

3.2 Research Design 43

3.3 Population, Sample size and Sampling Techniques 43-44

3.4 Source of Data and Data Collection Method44

3.5 Research Instruments44

3.5.1 Reliability of Instrument and Validity of Instrument 45

3.6 Re-statement of Hypothesis 45

3.7 Method of Data Analysis 45-46

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS 

4.1      Data Presentation and Analysis 47-65

4.2      Test of Hypothesis 66-69

4.3     Discussion of Findings  69

CHAPTER FIVE: SUMMARY, CONCLUSION, AND RECOMMENDATION 

5.1     Summary70

5.2     Conclusion 71

5.3      Recommendations71

5.4       Contribution to Knowledge 72

5.5      Limitation of the Study 72

5.6    Suggestion for Further Study72

           Reference             73-77

          Appendices