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Author(s): Adekunle Oluwagbenga David.

Volume/Issue: Volume 7 , Issue 4 (2024)

Abstract:

This study examined the analysis of capital market development and economic growth in Nigeria between 1986 and 2022. As a result, real gross domestic product was used as the dependent variables while independent variables in the study included market capitalization, all share index, value of transactions, total number of new issues and exchange rate. The Auto-Regressive Distributed Lag Modelling (ARDL) technique as well as the Engle Granger causality test were used to analyse the data obtained from the CBN statistical bulletin. The results emanating from the analysis reported that total number of new issues had a positive impact on the economic growth while other variables had insignificant effect on economic growth. Furthermore, the causality results revealed that all the stock market variables had a uni-directional causality running from each of them to economic growth. Therefore, it is recommended that new issues in the capital market should be seriously regulated as it can affect the economic growth in a significant manner.

Keywords:

Market Capitalisation; All Share Index; Value of Transactions; Total Number of Issues; Exchange Rate and ARDL.

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