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Stock Market Development And Economic Growth in Nigeria

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  • John C. Anyanwu

    (Associate Professor, Dept. of Economics & Statistics, University of Benin, Benin City, Nigeria)

Abstract

Is the stock market development important for economic growth in Nigeria? One line of research argues that it is not; another line stresses the importance of stock market development in allocating capital, acquisition of information about firms, easing risk management, mobilization of savings, and exerting corporate control. Indeed, some theories provide a conceptual framework for the belief that larger, more efficient stock markets boost economic growth. This article examines whether there is a strong empirical association between Nigerian stock market development and long-run economic growth. Our empirical results suggest that the Nigerian stock market development is positively and strongly associated with long-term economic growth. This implies that Nigerian policymakers should make concerted efforts at removing obstacles to stock market development while creating and sustaining an enabling macroeconomic and political environment for the market’s development.

Suggested Citation

  • John C. Anyanwu, 1998. "Stock Market Development And Economic Growth in Nigeria," Vision, , vol. 2(1), pages 33-38, January.
    • Handle: RePEc:sae:vision:v:2:y:1998:i:1:p:33-38
    DOI: 10.1177/09722629X98002001006
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    1. Okoroafor O.K David & Yelwa Mohammed, 2016. "The Perceived Relations between Development Reforms, Stock Market Performance and Economic Growth in Nigeria: 1984-2014," Economy, Asian Online Journal Publishing Group, vol. 3(1), pages 31-39.
    2. Ikpefan Ochei Ailemen & Ikwuetoghu Ogochukwu Cynthia & Okafor Tochukwu & Isibor Areghan, 2016. "An Investigative Analysis Into Capital Market And Economic Growth In Nigeria," Ekonomske ideje i praksa, Faculty of Economics and Business, University of Belgrade, issue 23, pages 65-83, December.
    3. Bamidele M. Ilo, 2015. "Capital Market and Unemployment in Nigeria," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 11(5), pages 129-140, October.
    4. 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.

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