MARKET CAPITALIZATION AND VARIATION INDEX OF INDUSTRIAL PRODUCTION IN NIGERIA

Abstract

This study determined the extent market capitalization affected the variation index of industrial production in Nigeria. An Ex-Post Facto research design was adopted and the time frame covers a period of thirty five (35) years that is, from 1987 to 2026. Data as applied in this study were obtained from the Central Bank of Nigeria (CBN) annual reports and statistical bulletin of 2021. The data as published in the statistical bulletin are on annual basis except otherwise stated. The Auto-Regressive Distributive Lag (ARDL) estimation technique was applied in estimating the models via E-Views 10.0. The study revealed that market capitalization has a significant negative relationship with index of industrial production. Based on the research outcome, it was recommended that the government create an enabling environment to encourage foreign direct investment in the industrial production sector, which will help to increase the nation's GDP.