ABSTRACT

This study examines the effect of capital market on Nigerian economy. This study specifically examines the effect of market capitalization, all share index, and total value of shares traded on Nigerian economy proxied by real gross domestic product. The study adopted ex post facto research design. A time series data from 1985 to 2017 were collected from CBN statistical bulletin 2017 and used for the econometric analysis. The econometric analysis techniques used for this study was ordinary least square with double-log multiple regression model. The Econometrics Views (EViews) version 8.0 was used for the analysis. Generally, the result indicates that capital market has significant effect on Nigerian economy. To be specific, the result indicates that market capitalization and all share index respectively has positive and significant effect on Nigerian economy. While total value of share traded has positive but statistically insignificant effect on Nigerian economy. The study recommends among other things that the government should design and implement policies that will increase the market capitalization, which will in turn increase economic growth. 

TABLE OF CONTENTS

Title Page i

Declaration ii

Certification iii

Acknowledgements iv

Dedication v

Table of Content vi

L ist of Tables ix

Abstract x

CHAPTER ONE

INTRODUCTION

1.1 Background to the study 1

1.2 Statement of the problem 4

1.3 Objectives of the study 5

1.4 Research  questions 6

1.5 Research hypotheses 6

1.6 Scope of the study 6

1.7 Significance of the study 7

CHAPTER TWO

LITERATURE REVIEW

2.1 Conceptual review 8

2.1.1 The roles of capital market 11

2.1.2 Challenges of the Nigerian capital market    12

2.1.3 Some Capital Market Performance   Indicators  13                             

2.1.3.1 Market capitalization 13

2.1.3.2 All share index 13

2.1.3.3 Total value of stock traded 13

2.1.4 Overview of the Nigerian capital market 14

2.1.5 Reasons for the establishment of the Nigerian capital market 14

2.1.6 The Nigerian security and exchange commission 15

2.1.7 The Nigerian stock exchange 17

2.1.8 Functions of Nigerian stock exchange 18

2.1.9 Economic growth 18

2.2  THEORITICAL FRAMEWORK 19

2.2.1 Financial liberalization theory 19

2.2.2 Endogenous growth theory 20

2.2.3 Modern portfolio theory 20

2.3 EMPIRICAL REVIEW 21

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research design 28

3.2 Scope of the study                                            28

3.3 Nature and source of data 28

3.4 Model specification 28

3.4.1 Description of  model variables 30

3.4.1.1 Dependent variable                                  30

3.4.1.2 Independent variables 30

3.5 Data analysis method 30

CHAPTER FOUR

DATA PRESENTATION ,ANALYSIS,AND INTERPRETATION OF RESULTS

4.1 Data presentation                                            32

 4.2    Data analysis and interpretation                    33 

4.2.1 Descriptive analysis                                      33

4.3    Inferential statistics and test of hypotheses    35

CHAPTER FIVE

SUMMARY OF FINDINGS ,CONCLUSION , AND            RECOMMENDATIONS                                                 

5.1 Summary of findings                                          40

5.2 Conclusion                                                          40

5.3 Recommendations                                              41

5.4 Contribution to knowledge                                  42

REFERENCES

APPENDIX

LIST OF TABLES

Table 4.1: Data Presentation 32

Table 4.2: Descriptive Statistics 33

Table 4.3: Regression Estimates for the Effect of Capital 

Market on Nigerian Economic growth 35