Effect Of Capital Market On Nigerian Economy (1985-2017):- Umunna, Chedinma . L.

ABSTRACT

This study examines the effect of capital market on Nigerian economy. This study specifically examines the effect ofmarket capitalization, all share index, and total value of shares traded on Nigerian economy proxied by real gross domestic product. The study adopted ex postfacto research design. A time series data from 1985 to 2017 were collectedfrom CBN statistical bulletin 2017 and usedfor the econometric analysis. The econometric analysis techniques usedfor this study -was ordinary least square -with double-log multiple regression model. The Econometrics Views (EViews) version 8.0 was usedfor the analysis. Generally, the result indicates that capital market has significant effect on Nigerian economy. To be specific, the result indicates that market capitalization and all share index respectively has positive and significant effect on Nigerian economic growth. While total value ofshare traded has positive but statistically insignificant effect on Nigerian economic growth. The study recommends among other things that the government should design and implement policies that will increase the market capitalization, which will in turn increase economic growth.