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Openness, Stock Market Development, and Industrial Growth in Nigeria

Author

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  • R. I. Udegbunam

    (Department of Economics and Statistics, Faculty of Social Sciences, University of Benin, Nigeria.)

Abstract

In recent years the Nigerian economy has been moving towards increased liberalisation, greater openness, and greater financial development. This paper examines the implications of these developments for industrial growth in Nigeria. A simple model, which relates industrial output growth to openness, stock market development, and a battery of control variables, is specified and estimated, using annual data covering the period 1970– 1997. The empirical evidence strongly suggests that openness to world trade and stock market development are among the key determinants of industrial output growth in Nigeria. The other important factors are human capital input, non-military expenditure, gross domestic product (GDP), which reflects the size of physical capital, and inflation.

Suggested Citation

  • R. I. Udegbunam, 2002. "Openness, Stock Market Development, and Industrial Growth in Nigeria," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(1), pages 69-92.
    • Handle: RePEc:pid:journl:v:41:y:2002:i:1:p:69-92
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    2. Kunofiwa Tsaurai, 2017. "Investigating the Relationship between Financial Development, Trade Openness and Economic Growth in Argentina: A Multivariate Causality Framework," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 13(3), pages 39-55, JUNE.
    3. Assad Ullah & Xinshun Zhao & Chenghui Ye & Muhammad Abdul Kamal, 2024. "Impact of Economic Policy Uncertainty Shocks on China’s Stock Market Development: Evidence from Nonlinear Autoregressive Distributed Lag and Spectral Causality Approaches," SAGE Open, , vol. 14(3), pages 21582440241, September.
    4. Saidu Swaray, 2023. "Openness and Monetary Policy in Small Developing Economies: Evidence from Sierra Leone," Applied Economics and Finance, Redfame publishing, vol. 10(2), pages 62-71, May.
    5. Udi Joshua & Oladimeji M. Salami & Andrew A. Alola, 2020. "Toward the path of Economic Expansion in Nigeria: The Role of Trade Globalization," Working Papers 20/009, European Xtramile Centre of African Studies (EXCAS).
    6. Shahbaz, Muhammad & Ur Rehman, Ijaz & Zainudin, Rozaimah, 2013. "Macroeconomic Determinants of Stock Market Capitalization in Pakistan:Fresh Evidence from Cointegration with unknown Structural breaks," MPRA Paper 52490, University Library of Munich, Germany, revised 24 Dec 2013.
    7. Offum, Peter F. & Ihuoma, Chikulirim E., 2018. "CAPITAL MARKET AND INDUSTRIAL PERFORMANCE NEXUS: Empirical Evidence from Nigeria," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 60(3), pages 1-16.
    8. Hlalefang Khobai & Clement Moyo, 2021. "Trade openness and industry performance in SADC countries: is the manufacturing sector different?," International Economics and Economic Policy, Springer, vol. 18(1), pages 105-126, February.

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