Olajumoke Rebecca Ogunniyi, Abiodun Funso Okunlola, Michael Akinade Alatise



Is Nigeria Economic Growth Capital Market Spurred?

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The x-ray of the sensitivity capabilities of the securities market cum economic growth in a nation’s life cannot be overemphasized. This is judging by the traditional a priori expectations of the former over the later which the study put to validation test in Nigeria. Government stocks/securities, debt/bonds, exchange trust fund (ETF) and equities encapsulated in total market capitalization and, all share index (ASI), formed the independent variables used. While, gross domestic product GDP at constant basic price represents the endogenous series. All data are sourced from the apex monetary authority records and that of the stocks market spanning thirty-four years (i.e. 1985 - 2019). Analysis is also enroute a tripartite path after confirming the Augmented Dickey Fuller (ADF) test status. The I(0) and I(1) outcome of the ADF necessitated the Autoregressive Distributed Lag (ARDL) analysis with a proof of the study’s series through diagnostic and stability tools of serial correlation and cumulative sum (CUSUM) test. This is further re-affirmed with the Error Correction Mechanism [ECM] long run estimates. Outcome provides a proof that economic growth is capital market spurred in the short-run but with a caveat of insignificant outcome and minor relationship in the long run. As such, the intertwining foundational a priori surmise of the role that the capital market plays on economy growth is further confirmed in Nigeria. Introduction and availability of tailored-made instruments dedicated to nominated economic growth is raised as recommendation.


Capital Market, Economy, RGDP, ARDL, ECM


Cite this paper

Olajumoke Rebecca Ogunniyi, Abiodun Funso Okunlola, Michael Akinade Alatise. (2022) Is Nigeria Economic Growth Capital Market Spurred?. International Journal of Economics and Management Systems, 7, 325-332


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