THE ROLE OF STOCK MARKET IN THE GROWTH OF NIGERIAN ECONOMY (1980 – 2010)

ABSTRACT
This study attempts to investigate the Role of the Stock Market in the Growth of the Nigerian Economy spanning through 1980 – 2010. The broad objective of this work is to ascertain the role of the stock market in output growth in Nigeria using Market Capitalization as a proxy for the stock market taking cognizance of some intervening variables. This was evaluated using OLS Method. It was observed that market capitalization has a significant impact on economic growth as well as the latter Granger Causing the former. There are also other variables that are modeled alongside market capitalization that affect the output of Nigeria. The policy recommendation in this work centres on deliberate attempts by the government and every agent responsible for the existence of the market either as a player or an umpire to be up and doing especially the government. The work is organized into five chapters, time series data were used with three regressors: market capitalization, domestic savings and value of traded stocks.

CHAPTER ONE
INTRODUCTION
1.1  Background of the Study
Stock Market is viewed as a medium to encourage savings, help channel savings into productive investment, and improve the efficient and productivity of investment. The emphasis on the growth of stock markets for domestics‘ resource mobilization has also been strengthened by the need to attract foreign capital in non-debt creating forms. A viable equity market can serve to make the financial system more competitive and efficient. Without equity markets, companies have to rely on internal finance through retained earnings. Large and well established enterprises are in a privileged position because they can make investment from retained earnings and bank borrowings, while new companies do not have easy access to finance. Without being subjected to the scrutiny of the stock market, big firms get bigger, and for the emerging smaller companies, retained earnings and fresh cash injections...

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Item Type: Project Material  |  Attribute: 74 pages  |  Chapters: 1-5
Format: MS Word  |  Price: N3,000  |  Delivery: Within 30Mins.
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