Nigerian Journal of Banking and Financial Issues (NJBFI)
The Effect Of Stock Market Performance On Output Growth In Nigeria
Keywords:
Stock Market Performance, Economic Growth, ARDL and NigeriaAbstract
The study investigates the effect of stock market performance on output growth in Nigeria between 1980 and 2022, using ARDL as an estimation technique. The results show that growth rate of Gross Capital Formation (GCFgr) and Market Capitalization of Listed Domestic Company (MCLDC) all assert a positive but non-significant effect on output growth in Nigeria while the Stock Trade Turnover Rate of Domestic Share (STTRDS) demonstrate a significant positive effect on Output Growth in Nigeria in the long-run in Nigeria. Also, Changes in growth rate of Gross Capital Formation D(GCFgr), changes in Market Capitalization of Listed Domestic Companies D(MCLDC) and changes in Stock Trade Turnover Rate of Domestic Share D(STTRDS) all indicate a positive but insignificant effect on growth rate of Gross Domestic Product (Output growth) in Nigeria. it is therefore recommended government should put-in- place policies that promote the effectiveness and efficiency of stock market performance in Nigeria, in order to attain the desired output growth level.
