Impact of Nigerian Stock Exchange on the Economic Development of Nigeria (1992-2018))

ABSTRACT

This project investigates the impact of Nigerian stock exchange on the economic development of Nigeria, identifying the factors that can improve the performance of the Nigerian stock exchange market in line with its counterparts in the rest of the world. The study explored the effectiveness of capital market instruments on Nigerian economic growth. Though the scope of the study was limited to the capital market, it is hoped that the exploration of this market will provide a broad   view of the operations of the capital market. It will contribute to existing literature on the subject matter by investigating empirically the role, which the capital market plays in the economic growth and development of the country. The methodology employed for this study was secondary data generated from the Central Bank of Nigeria (CBN) Annual Statistical Bulletin which has to do with the Nigerian stock exchange.The method of analysis for this study was based on econometrics. It was used on linear regression analysis so as to test whether the Nigerian Stock Exchange Market indices have impact on the economic development of Nigeria proxy by Gross Domestic Product (GDP).The findings from this research work, has pointed out that Nigerian Stock Exchange positively impacts the growth rate of the Nigerian economy.  Theoretically, a unit increase in stock market indicators brings about a more than proportionate increase in the GDP because of its capacity to mobilize capital needed by the deficit units of the economy for productive purposes. 

Keywords: Economic growth, economic development, stock exchange market, financial institutions.

 

TABLE OF CONTENTS

Front Page       ….……………………………………………………………………           i

Certification    …………………………………………………………………………        ii

Dedication      ……….………….……………………………………………………          iii

Acknowledgement   ………………..…………………………………………………….    iv

Abstract                      ……………………………………………………………………    v

Table of contents        ………………………………………………………………….    vi-viii

List of Table                ………………………………………………………………….       viii

List of Charts ……………………………………………………………………….           viii

Chapter One: Introduction

1.1       Background to the Study       -           -           -           -           -           -                       1

1.2       Statement of the Problem       -           -           -           -           -           -                       2

1.3       Research Objectives                -           -           -           -           -           -                       4

1.4       Research Questions                 -           -           -           -           -           -                       4

1.5       Research Hypothesis               -           -           -           -           -           -                       5

1.6       Significance of the Study       -           -           -           -           -           -                       5

1.7       Scope of the Study                 -           -           -           -           -           -                       6

1.8       Definitions of Terms               -           -           -           -           -           -                       6

Chapter Two: Review of Related Literature

2.1 Conceptual Review                       -           -           -           -           -           -                       8

2.1.1 Overview of Stock Market Developments in Nigeria  -           -           -                       9

2.1.2 Stock Market and Economic Growth    -           -           -           -           -                       11

2.1.3 Functions of the Nigerian Stock Exchange       -           -           -           -                       12

2.1.4 Impact of Stock Exchange Market on Economic Growth andDevelopment in Nigeria

2.2  Theoretical Review                      -           -           -           -           -           -                       15

2.2.1 The Endogenous Growth Theory          -           -           -           -           -                       15

2.2.2 The Modern Portfolio Theory    -           -           -           -           -           -                       17

2.3  Empirical Review             -           -           -           -           -           -           -                       17

Chapter Three: Methodology

3.1       Research Design         -           -           -           -           -           -           -                       20

3.2       Method of data Collection     -           -           -           -           -           -                       20

3.3       Source of Data                        -           -           -           -           -           -           -                       20

3.4       Model Specification    -           -           -           -           -           -           -                       20

3.5       Method of Data Analysis       -           -           -           -           -           -                       22

Chapter Four: Presentation and Analysis of Data

4.0       Introduction    -           -           -           -           -           -           -           -                       23

4.1       Data Presentation        -           -           -           -           -           -           -          

4.2       Data Analysis and Interpretation        -           -           -           -           -                       26

Chapter Five: Discussion, Conclusion and Recommendations

5.1       Findings of the study -           -           -           -           -           -           -                       28

5.2       Conclusion      -           -           -           -           -           -           -           -                       29

5.3       Recommendations      -           -           -           -           -           -           -                       30

            References      -           -           -           -           -           -           -           -                       33