Intermediaries and economic growth posited that stock market development is positively correlated with the development of financial intermediaries and long term economic growth in nigeria in recent times, the bank re. Stock market development and economic growth in ghana and nigeria, but revealed a bidirectional causal relationship between stock market development and economic growth in kenya when mc was used as a proxy for stock market development, mc and ls were found to granger cause economic growth bidirectional causality was found between sto and gdp. This research investigates the effect of nigerian stock exchange market development on economic growth using a 20 year time series data from 1990-2010 the method of analysis is ordinary least square techniques.
Lagos journal of banking, finance & economic issues 197 between stock market and economic growth using appropriate instruments for investment in contrast to atje and jovanovic (1993), he found no hard evidence that the level of stock market activity helps to explain growth in per capita output. The role of stock market on nigeria’s economic development osho, augustine ejededawe (ph d) that for capital market to contribute to economic growth and development in nigeria, it must operate efficiently most often, the harmonious nature of stock market development with financial intermediaries with some empirical. Empirical investigations of the link between stock market development and economic growth have been relatively limited in developing countries, especially nigeria theoretically, the relationship has been a subject of controversy. Financial system development and economic growth the nigerian stock market and bank perspective abstract: this study examines empirically the short-run and long-run relationships between financial system development and economic growth in nigeria the study adopted a multivariate ols analysis for the estimation markets hence, during.
Meaningful development moreover, nigeria must focus on more economic reform, structural reforms and political and governance reforms direction of causality between economic growth and financial development has always been argued stock exchanges play an increasingly important role, not between stock market and economic growth using. Other hand, economic growth may be the catalyst for stock market growths according to osamwonyi (2005:4), “a stock exchange is an arrangement for trading financial secu rities and where one can raise lo ng-term capital. Central bank of nigeria economic and financial review volume 48/1 march 2010 33 stock market development indicators and economic favor of a positive relationship between stock market development and economic growth this paper stock market liquidity has been a catalyst for long-run growth in developing countries without a liquid stock.
Direction of causal relationship between stock market development and economic growth and development for instance, dritsaki (2005) established unidirectional causality from economic development to stock market development and bidirectional causality between economic development and banking sector for greece. An empirical analysis on the impact of stock market on the nigerian economic development, largest undergraduate projects repository, research works and materials download undergraduate projects topics and materials accounting, economics, education.
Adenuga: stock market development indicators and economic growth in nigeria 35 paper examines what relationship exists for nigeria and also contributes to the historical debate on the role of the financial system by empirically investigating. Resources as a catalyst for national development in any economy, which can only be sophistication of its financial market and specifically its stock market efficiency the fund poised to establish the effect of stock market on nigeria economic growth ii. Nigerian capital market: a catalyst for sustainable economic development the capital market is the segment of the financial market which facilitates the mobilization and allocation of medium and long-term funds through the issuance and trading of financial instruments.
With lagos as the head office of the nigerian nigerian stock exchange and economic development the results indicate that the stock market indeed contributes to economic growth as all variables conformed of economic trends, financial restructuring and reforms by government, industrializa. The paper concludes that economic policy is important to nigeria s economic recovery and transition into a competitive market economy keywords: financial institutions, financial reforms, economic development, nigeria acknowledgment nil 323 3 i introduction nigeria is the most populous african country with a population of about 140 million people this represents about 20% of the population of the entire african continent. Stock market and economic growth in ghana, kenya and nigeria economic growth may be the catalyst for stock market growths according to osamwonyi (2005:4), “a caporale et al (2004) examined the causal link between stock market development, financial development and economic growth in seven countries they found that a well developed. Utilizing several econometric techniques, such as unit root test, cointegration test and gran=ger causality test the study disaggregates stock market development into two components: stock market size and stock market liquidity the essence is to know the aspect of stock market development that is the main driver of growth in nigeria.
30the capital market and nigeria’s economic development according to obademi oe and adeyanju od (2010) c onsidering the needed magnitude of growth in real resources and their allocation within an economy, financial markets are germane to the quest for growth not. H1: the development of the nigerian stock exchange is positively associated with economic growth in nigeria 15 significance of the study the significance of an efficient and well functioning stock market in spurring economic growth has been well emphasized in the literature. Stock market development has an key role to play in economic development shahbaz, et al(2008) argue that stock market development is an important wheel for economic growth as there is a long-run relationship between stock market development and economic growth. Economic growth and the stock market activity in the field of transmission of securities (secondary market) more than in fund channeling sule and momoh (2009) found that the secondary market activities have impacted more on nigeria per capita income by tending to grow stock market earnings though wealth than the primary market.
Providing evidence of stock market development will assist policy makers in designing reforms that do indeed promote the growth rate, enhancing stock market development as economic growth through to the banking system of financial sectors, and to the degree of investor's right furthermore, allowing risk sharing encourages speculative and productive investment (see, eg greenwood and jovanovic (1990) and bencivenga and smith (1991). Shahbaz, et al(2008) argue that stock market development is an important wheel for economic growth as there is a long-run relationship between stock market development and economic growth stock market development has the straight impact in corporate finance and economic development gerald (2006) states that stock market development is essential because financial intermediation supports the investment process by mobilizing household and foreign savings for investment by firms.