Abstract

 

This study was carried out to determine the Effect of Capital Market Institutions on the Development of Nigerian economy with specific objectives being to determine the effect of Capital Market performance on unemployment rate in Nigeria; to assess the effect of Capital Market performance on poverty level in Nigeria and to ascertain the effect of Capital Market performance on the standard of living in Nigeria. The study made use of descriptive research design using ordinary least square regression analysis to analyse the data with the aid of Eviews9. The findings of the study revealed that an increase in the Capital Market performance will decrease Unemployment rate, an increase in the Capital Market performance will lead to decrease in poverty level, and an increase in the Capital performance will lead to increase in standard of living. The study also revealed that Capital Market performance has significant effect on unemployment rate in Nigeria, there is significant effect of Capital Market performance on poverty level in Nigeria, and there is significant effect of Capital Market performance on standard of living in Nigeria. The study therefore recommended that the relevant regulatory agencies in the capital market should be focused on enhancing the efficiency and transparency of the market in order to improve investor’s confidence. Also, there is need for effective and favourable macroeconomic environment to facilitate the causality from stock market to economic growth. It must be understood that growing economics with significant and consistent impact on living standards of the people are a product of effective social, economic and political institutions and his is a major setback in the Nigeria environment. Thus there is the need to ensure that the channels of capital market induced growth are built around effective systems and that the policy institutions are actively involved in marking systemic checks and appropriate policy innovations to ensure capital market lead economic growth.

TABLE OF CONTENTS 

Cover page                                                                                                                          i

Title page                                                                                                                             ii

Declaration                                                                                                                          iii

Certification                                                                                                                                    iv

Dedication                                                                                                                           v

Acknowledgements                                                                                                            vi

Table of Contents                                                                                                               vii

Abstract                                                                                                                               x

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study                                                                                              1

1.2 Statement of the Problem                                                                                             3

1.3 Research Objectives                                                                                                     4

1.4 Research Questions                                                                                                       5

1.5 Research Hypotheses                                                                                                    5

1.6 Significance of the Study                                                                                             5

1.7 Scope of the Study                                                                                                        6

1.8 Limitations of the Study                                                                                               6

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 Conceptual Framework                                                                                                            7

2.1.1   The Nigerian capital market                                                                                   7

2.1.2   Structure of the Nigerian capital market                                                              8

2.1.3   Capital Market Reforms                                                                                          9

2.1.4   Roles of the capital market                                                                                     11

2.1.5   Concept of capital market variables                                                                     12

2.1.6. Concept of capital market variables                                                                      16

2.1.7   Economic Growth                                                                                                    17

2.1.8   Gross Domestic Product (GDP)                                                                             18

2.1.9    Analysis of the Nigerian capital market’s performance                                   19

2.1.10 The role of the capital market in economic development                                 20

2.2       Theoretical Framework                                                                                           21

 2.2.1 Harrod – Domar growth model                                                                               21

2.2.2 Solow-Swan growth theory                                                                                       22

2.2.3   Arrow Kenneth Growth Theory (Endogenous Growth Theory)                       22

2.2.4 Paul Romer Growth Theory                                                                                      22

2.3       Empirical Review                                                                                                     23

2.4 Summary/ gap in literature                                                                                           25

 

CHAPTER THREE: METHODOLOGY

3.1       Research Design                                                                                                       27

3.2       Area of Study                                                                                                            27

3.3       Population of the Study                                                                                          27

3.4       Sample size determination                                                                                     27

3.4       Sources of Data Collection                                                                                                 28

3.4.1   Secondary Data                                                                                                        28

3.5       Method of Data Analysis                                                                                        28

3.6       Model Specification                                                                                                28

3.6       Variable Measurement                                                                                            2

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Data Presentation and Analysis                                                                                  31

4.2 Test of Hypotheses                                                                                                        35

4.3 Discussion of findings                                                                                                  35

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

5.1       Summary of Findings                                                                                              37

5.2       Conclusions                                                                                                              40

5.3       Policy Implications                                                                                                             42

5.4       Recommendations                                                                                                  42

REFERENCES