The Impact Of Capital Market On Nigeria’s Economic Development; 1986-2005

ABSTRACT

This study on the impact of capital market on industrial development of Nigeria, covered the period, 1986-2005. Employing the ordinary least square regression analysis, all the four hypotheses proved significant even at 0% alpha level, thus suggesting that the models were wellspecified. The major findings are that the capital market exhibits a significant relationship with the levels of industrial development, fixed capital investments, new issues or capital formation and Nigeria’s gross domestic product, for the period under investigation. On the basis of these findings, the study therefore, recommends among others, that consistent policies should be pursued for better implementation and results. Also, the need for a conducive business environment can hardly be over-emphasized, especially in the areas of provision of basic infrastructures, protection of copy rights and patents, security of life and property, and avoidance of insider-trading, among others.