NAME OF AUTHOR(S)

Adigwe P.K, Nwanna Ifeanyi, Amala Ananwude.

E.O Ogunleye, P.A Adeyemi
Araoye Felix Ebun, Ajayi Emmanuel Oluseyi, Aruwaji Akinola Michael
Dr. Adeoye Amuda Afolabi
Thornsten Beck, Ross Levine
Demirguc-Kunt ; Ross Levine
Pat Donwa ; James Odia
Edame, Greg Ekpung; Okoro Uchenna
Ake Boubakari; Dehuan Jin
Yılmaz Bayar; Abdulkadir Kaya; Murat Yıldırım

Osmond N. Okonkwo; Hycenth O. Ogwuru; Emmanuel I. Ajudua

Adamopoulos Antonios

Ohiomu Sylvester, Godfrey Okoduwa Enabulu

Obubu M, Konwe C.S, Nwabenu D.C, Omokri Peter A, Chijioke M
Bernhard O. Ishioro
Tobias O. Olweny and Danson Kimani
OBJECTIVE OF THE STUDY
To determine if stock market development significantly impacts on Nigeria's economic growth.
To examine the impact of stock market development on the economic growth in Nigeria.
To examine the impact of the Nigerian Stock market development on the nation's economic growth.
To empirically examine the impact of the Nigerian Capital Market on the Nigerian economy
to investigate the impact of stock markets and banks on economic growth
to stimulate future research into the links between stock market development, and economic development
to empirically analyze the impact of the Nigerian capital market on her socio-economic development from 1981 8to 2008
To examine the impact of capital market on economic growth in Nigeria.
Explores causality relationship between stock market and economic growth for 5 Euronext countries
This study examines the relationship between stock market development and economic growth in Turkey

This study is aimed at determining the role and contributions of the Nigerian stock market to national income in Nigeria
This paper investigates the causal relationship between stock market development and economic growth for Germany

This study examines the effect of stock market on economic growth in Nigeria
The paper evaluates the contribution of Nigerian Stock Market on Economic Growth.
The study explores the causal linkage between stock market development and economic growth in Zimbabwe
This study investigates the causal relationship between stock market performance and economic growth in Kenya
THEORETICAL LITERATURE
McKinnon-Shaw (1973) hypothesis; states that financial liberalization and stock market development would promote econ
Levine (1991) and Bencivenga et al (1996); the stock market forms an integral part of financial system and serves importan
Classical growth models by Adam Smith, David Ricardo and Thomas Malthus. Endogenous growth theory by Paul Romer an
Financial Markets by Amadeo (2013) and Abiola and Okoduwa (2008) , Capital Market by Akingbounde (1996), Ekezie (200
Levine (1991); Bencivenga, Smith and Starr (1995)
-------------
Oyejide 1994; Levine and Zervos 1996; Demirguc-kunt and Levine 1996; Nyong 1997; Obadan 1998; Sule and Momoh 2009
Al-Faki (2006); Soyede (2005: 8); Pandey (2006); Olowe (1997); Dennis (1984); Osaze (2000); Akingbohungbe (1996); Ekezie
Levine 1991; Filer et al (1999); Spears (1991); Levine and Zervos (1998); Mishkin (2001); Caporale et al (2004); Levine (1996
Schumpeter (1911); Goldsmith (1969); McKinnon (1973); Shaw (1973); Bencivenga and Smith (1991); Levine and Zervos (1

The Bernoulli Hypothesis; Gurley and Shaw Hypothesis; Loss-Aversion Theory; Rational Expectations Theory;
Levine and Zervos; Fama and Schwert; King and Levine; Vazakidis and Adamopoulos;
Samuel, 1996; Demirguc-Kunt and Levine, 1996; Akinifesi, 1987; Levine and Zervos, 1996; Obadan, 1998; Onosode, 1998;
Emenuga, 1998; Osinubi, 1998).
(Eichengreen and Musa 1998).
Ujunwa and Chikeleze (2007), Levine and Renelt,1991, Schumpeter (1912), Robinson (1952) and Hicks (1969), Gurley and S
Rogers (2003), Solow (1956), Caporale, Howells, Soliman (2004), Bencivenga and Smith (1991), Levine (1991), King and Lev
VARIABLES, YEAR
1985 - 2014, GDP, Market capitalization, liqidity.
1970 - 2008, Market capitalization, money supply, total value traded, turnover ratio and gross capital formation.
1985 - 2014, Market Capitalization, turnover ratio
1992 - 2011, Market capitalization, GDP, inflation rate, foreign direct investment, total number of new issues, tottal value o
1976 - 1998, Turnover ratio, bank credit, real GDP per capita, black market premium, exports, imports, inflation, governme
1986 - 1993, Stock market size, market liquidity, market concentration, market volatility, institutional development and int
1981 - 2008, Market- Capitalization, total new issues.
1970 - 2010, Market Capitalization, number of deals in the market, value of transaction and interest rate
1995 - 2008, real GDP, FDI, Stock Total Traded Value, Turnover Ratio and Market Capitalization
Nigeria (1989 – 2009), real Gross Domestic Product (GDP) growth rate, market capitalization as percent of GDP, total value
1981 – 2012, Real Gross Domestic product (RGDP), total value traded (TVT), market capitalization ratio (MCR), turnover ra

1965-2007, SM is the general stock market index; GDP is the gross domestic product; BC is the bank lending

1989 and 2008, per capita income (pci), political stability (polca), gross capital formation (gk), lagged growth rate GDP and
1961 to 2015, Gross Domestic Product, All Share Index, Market Capitalization, Market Capitalization Ratio, Turnover Ratio,
1990:I to 2010:IV, real market capitalization, value traded ratio and stock market volatility
2001-2010, rate of growth in real GDP, Consumer price index
METHODOLOGY
Ordinary least square (OLS) regression analysis by way of simple linear correlation.
Descriptive analysis for data. Frequency count and percentage were used to analyse general questions.
Error correction method
Regression analysis
Generalized-Method-of Moments (GMM) estimators developed for dynamic panel models.

Multiple regression analysis

Neoclassical growth model
Granger Causality test
Johansen-Juselius cointegration test and Granger causality test.; Eviews 7.0 software package

Error Correction Model (ECM) technique with E-VIEWS 7

vector autoregressive model (VAR)

Augmented Dickey-Fuller Unit Root Test

regression analysis and ordinary least square technique. Multiple Linear Regression Model and Population Regression Func
Granger Causality Test , Toda and Yamamoto Test
VAR model
FINDINGS & CONCLUSION
Economic growth Is positively affected by stock market development proxied by market capitalization and value of stock tr
The study empirically investigated and confirmed the existence of long run relationship between stock market developme
The study concluded that stock market capitalization and turnover ratio had a positive influence on economic growth as co
Results show market capitalization does not have effect on the economy. Conclusion is that the Nigerian Capital Market ha
Using three alternative panel specifications, the data reject the hypothesis that financial development is unrelated to grow
1. cross country differences in the level of stock market development for each particular indicator. 2. Appealing 'correlatio
economic growth Is positively affected by stock market development proxied by market capitalization and value of stock tr
there is a positive relationship between value of transaction and economic groiwth. Capital market has positive and signifi
Results show that equity markets can increase the average productivity of capital and, in turn, positively affect growth by d
There was no causality between stock market development and economic growth in Nigeria,

this study reveals that the Nigeria’s stock market size with an average of 250 listed companies exacts significant influence
The results of Granger causality tests indicated that there is a unidirectional causality between stock market development

The study, from the regression results, confirms that there exist positive relationship between the economic growth and th
by the use of some notable stock market variables, the relationship between stock market and economic growth was foun
a two-way statistically significant relationship exists between stock market development and economic growth in Zimbabw
there exists no causal influence from the past values of the stock market index showing that Nairobi stock exchange is a fo
ted to lapses

positive relationship between stock market and economic growth a

weak and insignificant.

insurance companies and private pension funds.

ses on the part of most investors as a result of huge loss they have suffered in the recent time which

owth.
d in the recent time which is attributedto lapses on the part of regulatory institution of stock market t and lack of good govern
t and lack of good governance.