2015_The Growth-Effect of Stock Market Development in Nigeria (1989-2013)

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date 2016-02-15
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id 16345
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originalfilename 16345_4409a27cabca209.pdf
person Murtala Bala Umar
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spelling 16345 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=16345 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Business and Management English application/pdf 1.5 Nigeria Server storage Scanned document Universiti Sultan Zainal Abidin UniSZA Private Access Universiti Sultan Zainal Abidin SAMBox 2.3.4; modified using iTextSharp™ 5.5.10 ©2000-2016 iText Group NV (AGPL-version) 153 Economic Growth Copyright©PWB2025 2016-02-15 Investments 16345_4409a27cabca209.pdf Murtala Bala Umar Growth-Effect Stock Market Development Stock market development—Nigeria Financial markets 2015_The Growth-Effect of Stock Market Development in Nigeria (1989-2013) The stock market development promotes economic growth by facilitating savings mobilisation and capital formation. Evidence from developed markets reveals that the stock market development tends to be associated with key macroeconomic variables and economic growth. However, this linkage has not been adequately addressed in African countries, particularly Nigeria. The main objective of this study is to investigate the influence of stock market development on economic growth in Nigeria by employing time series data from 1989 to 2013. The Autoregressive Distributed Lag (ARDL) model is employed to empirically examine the relationship between stock market development and economic growth. The findings indicate the existence of a long-run relationship among the variables. In the long-run, stock turnover and value of shares traded indicate a positive relationship with economic growth. The results of Granger-causality test suggest a bidirectional relationship between stock turnover and economic growth. However, a unidirectional causality runs from value of stock transaction to economic growth. The findings show that higher value of stock transactions and stock turnover may increase the ability of stock market to foster economic growth. Therefore, policy makers should strengthen the reforms in the stock market financial sector for sustainable economic growth in Nigeria. Dissertations, Academic Thesis
spellingShingle 2015_The Growth-Effect of Stock Market Development in Nigeria (1989-2013)
state Terengganu
subject Economic Growth
Investments
Stock market development—Nigeria
Financial markets
Dissertations, Academic
summary The stock market development promotes economic growth by facilitating savings mobilisation and capital formation. Evidence from developed markets reveals that the stock market development tends to be associated with key macroeconomic variables and economic growth. However, this linkage has not been adequately addressed in African countries, particularly Nigeria. The main objective of this study is to investigate the influence of stock market development on economic growth in Nigeria by employing time series data from 1989 to 2013. The Autoregressive Distributed Lag (ARDL) model is employed to empirically examine the relationship between stock market development and economic growth. The findings indicate the existence of a long-run relationship among the variables. In the long-run, stock turnover and value of shares traded indicate a positive relationship with economic growth. The results of Granger-causality test suggest a bidirectional relationship between stock turnover and economic growth. However, a unidirectional causality runs from value of stock transaction to economic growth. The findings show that higher value of stock transactions and stock turnover may increase the ability of stock market to foster economic growth. Therefore, policy makers should strengthen the reforms in the stock market financial sector for sustainable economic growth in Nigeria.
title 2015_The Growth-Effect of Stock Market Development in Nigeria (1989-2013)
title_full 2015_The Growth-Effect of Stock Market Development in Nigeria (1989-2013)
title_fullStr 2015_The Growth-Effect of Stock Market Development in Nigeria (1989-2013)
title_full_unstemmed 2015_The Growth-Effect of Stock Market Development in Nigeria (1989-2013)
title_short 2015_The Growth-Effect of Stock Market Development in Nigeria (1989-2013)
title_sort 2015_the growth-effect of stock market development in nigeria (1989-2013)