Nigerian Journal of Banking and Financial Issues (NJBFI)

ECONOMIC FACTORS AND FINANCIAL DEVELOPMENT IN NIGERIA: INTERACTIVE INFLUENCE OF CONTROL OF CORRUPTION

Abstract

Global economy forces and Government economic policies are responsible for economic uncertainty spread around the world. Unstable economic policies or economic factors affects every economic sector in different ways including capital market, especially when confronted with an unanticipated shock in the developing economies like Nigeria. Thus, the study explores link between economic factors and financial development proxied with stock turnover. Expost facto design was adopted and yearly data sourced from World Bank and Federal Reserve Bank of St. Louis within the data scope of 1986 - 2024. The dependent variable is financial development proxied with stock turnover while independent variable is economic factors. Finding revealed that economic factors and interactive influenced of control of corruption with economic factors significantly determined stock turnover in short and long runs. Thus, the study concluded that economic factors with control of corruption influence stock turnover of NGX. The study recommended that Federal Government of Nigeria should guarantee that stock investors are always aware of the government's economic policies orientation and pattern, this will enhance stock investment patronage in the NGX.