The Role Of Stock Market In The Growth Of Nigerian Economy

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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.

TABLE OF CONTENT

Title Page----------------------------------------------i
Certification-------------------------------------------ii
Dedication--------------------------------------------iii
Acknowledgement-----------------------------------iv
Abstract-----------------------------------------------v
Table of Content -------------------------------------vi

CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the Study ---------------------------1
1.2 Statement of the Problem---------------------------4
1.3 Research Question-----------------------------------5
1.4 Objectives of the Study------------------------------5
1.5 Hypothesis of the Study-----------------------------6
1.6 Significance of the Study----------------------------6
1.7 Scope of the Study-----------------------------------7

CHAPTER TWO
2.0 LITERATURE REVIEW----------------------------8
2.1 Theoretical Literature -------------------------------8
2.2 Empirical Literature---------------------------------23

CHAPTER THREE
3.0 RESEARCH METHODOLOGY--------------------39
3.1 Model Specification--------------------------------39
3.1.1 Functional Form Specification---------------------39
3.1.2 Econometric Specification-------------------------40
3.2 Estimation Procedure------------------------------41
3.2.1 Economic Test-----------------------------------42
3.2.2 Econometric Test--------------------------------42
3.2.3 Diagnostic Test----------------------------------45
3.3 Sources of Data---------------------------------47

CHAPTER FOUR
4.0 PRESENTATION AND ANALYSIS OF DATA
4.1 Presentation of Regression Result-----------------48
4.2 Evaluation of Result--------------------------------50
4.3 Econometric Test-----------------------------------51
4.4 Econometric Criteria(Second Order Test)---------54
4.5 Interpretation of Result----------------------------58
4.6 Policy implication of Findings----------------------59

CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, RECOMMENDATIONS
AND CONCLUSIONS
5.1 Summary of findings--------------------------------61
5.2 Recommendations----------------------------------62
5.3 Conclusions------------------------------------------64
BIBLIOGRAPHY---------------------------------65
Appendix
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(2016, 02). The Role Of Stock Market In The Growth Of Nigerian Economy.. ProjectStoc.com. Retrieved 02, 2016, from https://projectstoc.com/read/7189/the-role-of-stock-market-in-the-growth-of-nigerian-economy-7867
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"The Role Of Stock Market In The Growth Of Nigerian Economy.." ProjectStoc.com. ProjectStoc.com, 02 2016. Web. 02 2016. <https://projectstoc.com/read/7189/the-role-of-stock-market-in-the-growth-of-nigerian-economy-7867>.
"The Role Of Stock Market In The Growth Of Nigerian Economy.." ProjectStoc.com. 02, 2016. Accessed 02, 2016. https://projectstoc.com/read/7189/the-role-of-stock-market-in-the-growth-of-nigerian-economy-7867.

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