Impact of capital market performance on economic growth: An assessment from Nigeria

Abstract

This is an investigation of the impact of capital market performance on economic growth in Nigeria from 2010 to 2020. The general objectives were to assess the impact of market capitalisation on Real GDP, to determine the influence of the value of trade on Real GDP. Ordinary least square (OLS) method was used for estimation to evaluate the impact of capital market performance on economic growth in Nigeria using secondary quarterly times series data from Q1 2010 to Q4 2020. Data was obtained from Nigeria Stock Exchange (NSE), National Bureau of Statistics (NBS), and Central Bank of Nigeria (CBN). Analysis revealed that there is a positive and significant level relationship between indices of capital market performance and economic growth measured by real gross domestic product in Nigeria and statistically significant at 5%. It concluded that the Capital Market positively and significantly impact economic growth in Nigeria. Further studies need to be carried out using different parameters to verify the consistency of all findings. This research is currently part of limited studies that investigated the influence of capital market performance on economic growth in Nigeria using quarterly time-series data.