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Stock Market and Economic Growth in Nigeria

Olabisi R, Popoola and Jeremiah, O. Ejemeyovwi and Philip, O. Alege and Omobola, Adu and Ademola, A. Onabote (2017) Stock Market and Economic Growth in Nigeria. International Journal of English Literature and Social Sciences (IJELS), 2 (106). pp. 97-106. ISSN 2456-7620

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This study investigates the short run effect, long run effect and causal relationship between stock market and economic growth in Nigeria. The Augmented Dickey Fuller unit root test, Ordinary Least Squares, Johansen Cointegration test and Pairwise granger causality methods were applied to the variables. The OLS result showed that the all share index had a significant but negative relationship with economic growth; The Johansen cointegration test showed that a long run relationship exists between the stock market performance and economic growth in Nigeria in the long run while the Granger causality test results showed that stock market performance does not granger cause economic growth but economic growth granger causes stock market performance at 5 percent significance level. The study suggested some of the possible reasons for the negative impact of stock market on the Nigerian economic growth and recommended that efforts should be made to improve the stock market performance to have a positive effect on the real gross domestic product of Nigeria overtime.

Item Type: Article
Uncontrolled Keywords: All Share Index, Market Capitalization, Stock Market Gross Capital Formation.
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
Divisions: Faculty of Law, Arts and Social Sciences > School of Management
Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: nwokealisi
Date Deposited: 11 Jan 2024 14:43
Last Modified: 11 Jan 2024 14:43

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