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Impact of Capital Market Development on the Nigerian Economy: A Post-SAP Analysis

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  • Adeusi S.O
  • Azeez B.A

Abstract

This paper addresses the impact of capital market development on economic growth and development since the liberalization policy in 1986 to 2010 in Nigeria. It employs Ordinary Least Square (OLS) and Johansen CO-integration estimation techniques. Gross Domestic Product (GDP) was used as measure for economic growth while the capital market development are represented with Market Capitalization (MCAP), Total Value of Transaction (TVT), Total New Issues (TNI), All-Share Index (ALSI) and Total Listing on the NSE (TLT). The result of the study shows that capital market development has not impacted positively on Nigeria economic growth and development due to the relative small size of the market despite its development as a result of the liberalization policy. Thus, it recommends that policies that would encourage domestic as well as foreign investors to participate in the market should be formulated.

Suggested Citation

  • Adeusi S.O & Azeez B.A, 2013. "Impact of Capital Market Development on the Nigerian Economy: A Post-SAP Analysis," Journal of Economics and Behavioral Studies, AMH International, vol. 5(1), pages 1-7.
    • Handle: RePEc:rnd:arjebs:v:5:y:2013:i:1:p:1-7
    DOI: 10.22610/jebs.v5i1.374
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    References listed on IDEAS

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    1. Levine, Ross & Zervos, Sara, 1996. "Stock Market Development and Long-Run Growth," The World Bank Economic Review, World Bank, vol. 10(2), pages 323-339, May.
    2. John C. Anyanwu, 1998. "Stock Market Development And Economic Growth in Nigeria," Vision, , vol. 2(1), pages 33-38, January.
    3. Levine, Ross, 1991. "Stock Markets, Growth, and Tax Policy," Journal of Finance, American Finance Association, vol. 46(4), pages 1445-1465, September.
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    Cited by:

    1. Udo Ginikachi Cynthia & Nwezeaku Nathaniel Chinedum & Kanu Success Ikechi, 2021. "Effects of Capital Market Development on the Economic Growth of Nigeria," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 7(2), pages 30-46, June.
    2. Mesagan Peter Ekundayo & Amadi Nkem Agatha, 2017. "The Efficiency Market Theory: A Case of Commercial Banks Stocks in Nigeria," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 583-587, December.

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