Stock exchange market activities and Economic Development: Evidence from the Nigerian economy

Adesanya, Babatunde Moses and Adediji, Adebisi Moses and Okenna, Nwabueze Prince (2020): Stock exchange market activities and Economic Development: Evidence from the Nigerian economy. Published in: Bingham Journal of Economics and Allied Studies (BJEAS) , Vol. 4, No. 2 (2 December 2020): pp. 231-245.

Abstract

The study examined the impact of stock exchange market activities on economic development in Nigerian economy. The study employs multiple regressions as a technique to measure the effect of stock exchange market development on the Nigerian economy. The Secondary Data used were into market capitalization (CAP), all share index (ALLSHARE) and total volume of transaction (TNOV) and were sourced from the Central Bank of Nigeria (CBN) statistical bulletin, 2019. The technique of data analysis used was the ordinary least square (OLS) method of estimation. Findings reveals that the market capitalization (CAP) had a positive relationship with GDP, with the relationship being statistically insignificant. ALLSHARE has a positive and significant relationship with GDP. TNOV has a positive and significant relationship with GDP. Therefore, it was recommended that Government should help to restore confidence to the market through regulatory authorities which will portray transparency, fair trading transactions and dealing in the stock exchange and consequently improve economic development. The SEC and NSE should put a very good advocacy programme in place to encourage and awaken Nigerians’ interest in the capital market as this will boost local participation in the market and as well enable local investors to absorb shares offloaded by foreign investors any time there was perceived economic instability.

• Item Type: MPRA Paper
• Language: English
• Keywords: stock exchange market, economic development, ordinary least square (OLS)
• Subjects: E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy; G - Financial Economics > G1 - General Financial Markets > G10 - General

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