ABSTRACT

This research work examines the impact of Nigerian capital on domestic economy, using time series data on market capitalization all share index number of listed securities, number of listed dealers, and value ofshare traded that ranges between 2000 to 2008. To achieve this objective the use of secondary data was employed by the researcher, and a combination of the descriptive statistical technique, and the Pearson's product moment correlation coefficient were employed in data analysis. Our results indicate that there is a significant relationship between the Nigerian capital market and the rate of growth on domestic economy. Also, our result indicates that there is no significant relationship between the Nigerian capital markets and the rate of growth on domestic economy. Nigerian capital market cannot improve the economy without the collective effort of all other sectors of the economy, especially the manufacturing sector. This will enable the capital market improve its illiquidity status for economic growth and development. Since, capital market is categorized into primary market and secondary market. New securities are issued in the primary market while that of secondary market provides an avenue for the sale of exiting securities by one investor to another investor. Therefore the government must contribute In order to achieve these objectives through investing government securities in productive sector and relaxing laws that spill threat the capital market. Thus, it was concluded and recommended that, capital market remain one of the mainstreams in very economy that has the power to influence domestic economy, hence the invest in it. Also, the impact of capital market on the domestic economy is to strengthen any country and supports government and corporate initiative by rising of funds through primary market and secondary market.