Oladeji, Tolulope and Ikpefan, Ochei Ailemen and Alege, P. O. Estimating the Threshold Level of Stock Market Price Volatility on Economic Growth. In: 31st International Business Information Management Association Conference, 25 -26 April 2018, Italy.
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Abstract
The threshold level of stock market volatility on economic growth was estimated using quadratic regression model based on annual data of the Nigerian economy from 1985 to 2016. The study found evidence of a threshold effect of stock market volatility on economic growth in Nigeria. The established that the critical point of stock market price volatility which impacts on economic growth for the Nigerian economy is 7.1 percent, beyond this level, stock market price volatility starts exerting cost on growth. The marginal impact of stock market price volatility on growth becomes negative beyond a threshold ratio of about 7.1 percent of GDP. Also, the study revealed that almost all the explanatory variables had signs that were inconsistent with theoretical predictions except capital and trade that had expected signs in line with theoretical expectations. All stakeholders of the Nigerian stock market are, therefore, advised to monitor the stock market price closely such that investment is made close to or equal to 7.1 percent of the GDP to have a positive impact on the economy. Any investment made beyond this threshold point could have an adverse effect on economic growth
| Item Type: | Conference or Workshop Item (Paper) |
|---|---|
| Subjects: | H Social Sciences > HG Finance |
| Divisions: | Faculty of Law, Arts and Social Sciences > School of Social Sciences |
| Depositing User: | Dr. Tolulope Adesina (Oladeji) |
| Date Deposited: | 25 Jun 2021 15:10 |
| Last Modified: | 25 Jun 2021 15:10 |
| URI: | http://eprints.covenantuniversity.edu.ng/id/eprint/14953 |
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