THE IMPACT OF STOCK MARKET PERFORMANCE ON ECONOMIC GROWTH IN NIGERIA

Abstract

This study examines the impact capital market development has on the economic growth in Nigeria between 1999 and 2022. Data for this study were sourced from Central Bank of Nigeria Statistical Bulletin, 2022. Autoregressive Distributed Lag Regression Estimate (ARDL) analysis was conducted with the aid of E-view 10. Findings of this study reveal that the entire aforementioned explanatory variables understudy have positive and statistically significant impact on RGDP. More so, capital market development has positive and statistically significant short run and long run relationship with economic growth in Nigeria between 1999 and 2022.As manifests from findings of this study, the following recommendations are suggested: that capital market development should be the focuses of all stakeholders including Nigerian government at all levels by placing undivided attention in improving capital market activities by providing conducive business environment for the market to continue thrive. Second, Transactions at Nigerian Stock Exchange should be more transparent by all the stakeholders engaging in capital market activities in order to encourage more participants and prospective investors, through accountability and public awareness. Third, aggregate of All Share Index (ASHI) should be reportedly both monthly and annually as against only monthly.