EKSU Journal of the Management Scientists

The Impact of Capital Market on the Economic Growth of Nigeria

Abstract

The study assessed how the capital market affected Nigeria's economic growth. Specifically, the impact of the Nigeria stock exchange's market capitalization and volume of trade on Nigeria's economic development was evaluated. Time-series data covering 2010–2023 was obtained in the study. Estimation methods used in the study’s analysis include descriptive statistics correlation analysis, ARDL co-integration analysis, parsimonious error correction model, variance decomposition and other post-estimation tests. Discoveries from the study showed that MCAP positively impacts economic growth in the long and short run. The MACP affects economic growth positively and insignificantly in the long and short runs, and the VOT exerts a significant positive effect on the economic growth of Nigeria. Hence, the study recommended that the Security and Exchange Commission should explore measures, including technological integration in trading activities, to deepen development in the capital market.