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Does Stock Market impact on the Growth of Nigerian Economy using 3SLS Analysis?

Author

Listed:
  • Oseni, Isiaq
  • Akpa, Emeka
  • Aberu, Felix

Abstract

The paper investigated the impact of stock market on economic growth in Nigeria from 1981 to 2016 using a three-equation simultaneous-equations model in a Three Stage Least Square (3SLS) estimation technique. The paper found that stock market positively spurs economic growth in Nigeria indicating that increase in stock market participations would enhance growth in Nigerian economy. The paper therefore concluded that there is positive and significant effect between stock market and economic growth. The paper recommended that policy makers should encourage more participation in the stock market by making it easier for business owners and foreign investors have easy access business registration and float on the stock market.

Suggested Citation

  • Oseni, Isiaq & Akpa, Emeka & Aberu, Felix, 2018. "Does Stock Market impact on the Growth of Nigerian Economy using 3SLS Analysis?," MPRA Paper 92285, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:92285
    as

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    File URL: https://mpra.ub.uni-muenchen.de/92285/1/MPRA_paper_92285.pdf
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    References listed on IDEAS

    as
    1. Pan, Lei & Mishra, Vinod, 2018. "Stock market development and economic growth: Empirical evidence from China," Economic Modelling, Elsevier, vol. 68(C), pages 661-673.
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    3. Odusanya, Ibrahim Abidemi & Atanda, Akinwande AbdulMaliq, 2010. "Analysis of inflation and its determinants in Nigeria," MPRA Paper 35837, University Library of Munich, Germany.
    4. Yilmaz Bayar & Abdulkadir Kaya & Murat Yildirim, 2014. "Effects of Stock Market Development on Economic Growth: Evidence from Turkey," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 5(1), pages 93-100, January.
    5. Guglielmo Maria Caporale & Peter G. A Howells & Alaa M. Soliman, 2004. "Stock Market Development And Economic Growth: The Causal Linkage," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 29(1), pages 33-50, June.
    6. Ifuero Osad Osamwonyi & Abudu Kasimu, 2013. "Stock Market and Economic Growth in Ghana, Kenya and Nigeria," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 4(2), pages 83-98, April.
    7. MAKU, Olukayode E. & ATANDA, Akinwande Abdulmaliq, 2010. "Determinants of stock market performance in Nigeria: long-run analysis," MPRA Paper 35838, University Library of Munich, Germany.
    8. Abu Nurudeen, 2009. "Does Stock Market Development Raise Economic Growth? Evidence from Nigeria," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 1(1), pages 015-026, December.
    9. Ake Boubakari & Dehuan Jin, 2010. "The Role of Stock Market Development in Economic Growth: Evidence from Some Euronext Countries," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 1(1), pages 14-20, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Stock Market; Economic Growth; 3SLS; Emerging Economies; Fiscal Policy;
    All these keywords.

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

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