tailieunhanh - Impact of capital market on Nigerian economy, 1981 - 2014

This study examined the impact of the capital market on Nigerian economy. Time series data were collected on Real Gross Domestic Product, Market Capitalization, All Share Index and Turnover Ratio from 1981 - 2014. | Impact of capital market on Nigerian economy 1981 - 2014 International Journal of Management IJM Volume 8 Issue 3 May June 2017 142 Article ID IJM_08_03_014 Available online at http ijm JType IJM amp VType 8 amp IType 3 Journal Impact Factor 2016 Calculated by GISI ISSN Print 0976-6502 and ISSN Online 0976-6510 IAEME Publication IMPACT OF CAPITAL MARKET ON NIGERIAN ECONOMY 1981 - 2014 Ugwuanyi Charles Uche Department Of Economics Michael Okpara University Of Agriculture Umudike Abia State Nigeria ABSTRACT This study examined the impact of the capital market on Nigerian economy. Time series data were collected on Real Gross Domestic Product Market Capitalization All Share Index and Turnover Ratio from 1981 - 2014. The study employed Unit root Cointegration and Granger Causality Tests as well as Ordinary Least Square method in the empirical analysis. The unit root tests show that the variables were not stationary at level but all became stationary at first difference. They were said to be integrated of the order one 1 1 at first difference. The Cointegration Test revealed that all the variables were cointegrated showing a long-run equilibrium relationship between capital market and Nigerian economy. The Granger Causality Test shows a unidirectional causality between the variables in the model. The OLS result indicates that the coefficient of determination . the R-squared has a value of . This implies that 98 percent changes in the Real Gross Domestic Product of Nigeria could be attributed to the independent variables. The MCAP amp TURNR have coefficient values of and with t-statistic of and respectively. The All Share Index ASHI has negative coefficient value of and t-statistic value of . The implication of these findings is that the capital market in Nigeria appears not to be contributing enough to the economy as ASHI seen in economic .