Growth in Nigeria Economics
Research Journal of Finance and Accounting
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online)
Vol 2, No 3, 2011
www.iiste.org
The Role of Capital Market on Economic Growth in Nigeria (19802008)
Usman Owolabi Akeem, Phd
Faculty of ManagementScience,PMB4000, LAUTECH,Ogbomoso,Nigeria e-mail-labisky@yahoo.com, Tel:+2348036675099
Abstract
The capital markets play important roles in the economy growth of the market. A well functioning market insures that both corporation and investors get or receive fair prices for their securities. It examine the impact of capital market on the Nigeria economy and also examine how stock exchange market has contributed to the economic growth which aims at studying the second tier securities market. The secondary data employed for thi s research work were sourced from the statistical bulletin of the Central Bank of Nigeria (CBN) 2008. The ordinary least square is used for all variables in order to determine the linear relationship between the independent and independent variable. Using Statistical Package for Social Sciences (SPSS). Multiple regression models were adopted in this research work with the result from this regression model show that the R 2 for model one and two are 0.840, 0.888, which implies that 84% and 88% variation in the dependent variable can be attributed to the variation in the independent variable, Also R2 – ADJUSTED OF 0.799 and 0.874 implies that 79% and 87% show a minimize error from the coefficient of determinant (R2). In conclusion, it has been observed that this ensures that valuable projects will be financed and negative value project will be rejected. Most importantly will argue that integration into the world capital market will accelerate the growth process.
Keywords: Market Capitalization, Inflation rate, T urnover and Real Output.
1.0
Introduction
Securities were first floated in Nigeria early as 1946, although there was no systematic and organized capital market with all
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online)
Vol 2, No 3, 2011
www.iiste.org
The Role of Capital Market on Economic Growth in Nigeria (19802008)
Usman Owolabi Akeem, Phd
Faculty of ManagementScience,PMB4000, LAUTECH,Ogbomoso,Nigeria e-mail-labisky@yahoo.com, Tel:+2348036675099
Abstract
The capital markets play important roles in the economy growth of the market. A well functioning market insures that both corporation and investors get or receive fair prices for their securities. It examine the impact of capital market on the Nigeria economy and also examine how stock exchange market has contributed to the economic growth which aims at studying the second tier securities market. The secondary data employed for thi s research work were sourced from the statistical bulletin of the Central Bank of Nigeria (CBN) 2008. The ordinary least square is used for all variables in order to determine the linear relationship between the independent and independent variable. Using Statistical Package for Social Sciences (SPSS). Multiple regression models were adopted in this research work with the result from this regression model show that the R 2 for model one and two are 0.840, 0.888, which implies that 84% and 88% variation in the dependent variable can be attributed to the variation in the independent variable, Also R2 – ADJUSTED OF 0.799 and 0.874 implies that 79% and 87% show a minimize error from the coefficient of determinant (R2). In conclusion, it has been observed that this ensures that valuable projects will be financed and negative value project will be rejected. Most importantly will argue that integration into the world capital market will accelerate the growth process.
Keywords: Market Capitalization, Inflation rate, T urnover and Real Output.
1.0
Introduction
Securities were first floated in Nigeria early as 1946, although there was no systematic and organized capital market with all