+234 813 0686 500
+234 809 3423 853
info@grossarchive.com

AN ECONOMETRIC ANALYSIS OF THE IMPACT OF THE NIGERIAN CAPITAL MARKET ACTIVITIES ON ECONOMIC GROWTH IN NIGERIA 1981 - 2008

  • Type:Project
  • Chapters:5
  • Pages:61
  • Methodology:Multiple Regression Analysis
  • Reference:YES
  • Format:Microsoft Word
(Economics Project Topics & Materials)
AN ECONOMETRIC ANALYSIS OF THE IMPACT OF THE NIGERIAN CAPITAL MARKET ACTIVITIES ON ECONOMIC GROWTH IN NIGERIA
1981 - 2008
CHAPTER ONE

1.1    INTRODUCTION
    The major engine of growth and development of any economy is the capital market, which accommodate certain institutions for the creation, distribution and exchange of financial assets and management of long-term liabilities. An economy without a capital market cannot grow since the capital market is responsible for long term growth, capital formation and allocation to development use efficiently (Osazee, 2000).
    A developing country like Nigeria has a strong affinity for further growth and development. Like every other country, Nigeria has a financial framework responsible for regulating the financial aspects of its economy. The major aim of the financial system is to mobilize and channel funds effectively from the surplus to the deficit sectors and to transfer resources from savers to investors. It performs the important functions of providing the needed finance for the provision of essential goods and services to bring about economic growth through the interplay of individuals, the money market and capital market. While the money market provides finance on a short-term basis, the capital market provides finance to corporate bodies, government and individuals on medium to long term basis. The capital market is for the issuance and trading in long term securities and claims such as bonds, debentures and equity stock.
    The emergence of capital market is owed to the development of a market oriented economy which is required as an alternative source of funds to the money market for the4 purpose of funding economic projects.
    The capital market can be defined as a complex of institutions and mechanisms, process and infrastructure that in various ways facilitate and bring together suppliers and users of medium to long term capital for investment in socio-economic development projects. According to Mallam Musa Al-Faki, the capital market embraces all the arrangements that facilitate the buying and selling of securities.
The Nigerian capital market has been and is still a major source of finance to both government and firms. It has several functions which include: providing a market mechanism for management charges as compared with the administrative or political mechanism of public sector corporations, the provision of market measure of returns on capital for the improvement of the efficiency of capital. It also promotes and provide he means to improve corporate governance and the mobilization of functions that has helped to a considerable extent in solving our economic problems.
With the exception of the functions mentioned above, it also facilitates the transmission and implementation of macro economic policies. This goes to show why the public authorities that are responsible for economic policies and private sector agents who are active in the capital market have vested interest in capital markets that are both efficient and stable. Economist and researchers unanimously believe that capital market wherever they operate have in no small measure played an integral role in the economic growth of their host economies.  
The major focus of this research is to empirically assess with the use of facts and figure the Nigerian capital market and its impact in economic growth in Nigeria. This research will also critically evaluate the major achievements and contributions of the Nigerian capital market.
1.2    STATEMENT OF THE PROBLEM
    The linkage between stock market and economic growth proxied by Gross Domestic Product (GDP) has been a topic for discussion over the years.
    The market capitalization of listed companies which is usually a percentage4 of GDP according to the World Bank report has been experiencing a decline through the years. Market capitalization (also known as market value) is the share price times the number of shares outstanding. Listed companies are the domestically incorporated companies listed on the country’s exchange listed companies do not include investment companies, mutual funds, or other collective investment vehicles.
    Moreover there is no confidence in the market and the presence of sharp practices by some companies in the market. Also more than 50% of Nigerian are not conversant with the activities in the capital and poor infrastructure as the main obstacle for future sustainable growth.
1.3    RESEARCH QUESTIONS
    With regard to the above problems and in order  to address the short comings and proffer solutions, the following questions could be asked.
How does the capital market increases the Gross Domestic Product (GDP)?
What extent has the capital market contributed significantly to the overall growth of the Nigerian economy?
1.4    OBJECTIVES OF THE STUDY
    The task of this work is to:
Examine the impact of the Nigerian capital market on its economic growth.
And the channels through which the capital market promotes economic growth.
1.5    HYPOTHESES OF THE STUDY
Ho:    Capital market does not contribute to the growth of Nigerian economy.
Hi:    Capital market has contributes to the growth of Nigerian economy.
1.6    SIGNIFICANCE OF THE STUDY
    The significance of this study cannot be over emphasized especially since it deals with such a sensitive organ as the capital market. However Osimubi and Amaghionyeodiwe (2003) had also examined the relationship between the Nigerian capital market and economic growth during the period 1980-2000. The result indicates that there is a positive relationship between the stock market and economic growth and suggested the rapid development of the stock market.
    This study is so important as it will endeavour to examine the relationship between the capital market and economic growth from the period of 1981 to 2008. In the course of doing this it will examine how the capital market currently aids Gross domestic product (GDP) and long rune economic growth. It will also provide suggestion on how foreign private investment will benefit the capital market. This study will also provide opportunities for government to finance projects aimed at providing essential amenities for socio-economic growth and development.
1.7    SCOPE/LIMITATION OF THE STUDY
This study will cover how the capital market has impacted on th4e economy within 1981 to 2008. It will also examine how the capital market makes GDP.
And just as no research work can lay claim to a repertoire of knowledge of any discourse or provide an exhaustive handling of any issues, this work under study is as well limited. This is as a result of some constraints which are inevitable in an organized effort towards providing solutions to perceived problems.
Its primary limitations are lack of sufficient funds for the study, rudeness of some custodians of data and scanty statistics with unavailability of some relevant  data due to lack of record keeping. Also the high cost of transportation to source for information also made it difficult to access most of the publication of research institutions and inadequate research materials online and even in academic publications and journals was also a problem.
Nonetheless, it made to do with the materials in reach which no doubt proved capable in tackling the topic at hand.

AN ECONOMETRIC ANALYSIS OF THE IMPACT OF THE NIGERIAN CAPITAL MARKET ACTIVITIES ON ECONOMIC GROWTH IN NIGERIA 1981 - 2008

Share This

Details

Type Project
Department Economics
Project ID ECO0519
Price ₦3,000 ($9)
Chapters 5 Chapters
No of Pages 61 Pages
Methodology Multiple Regression Analysis
Reference YES
Format Microsoft Word

500
Leave a comment...

    Details

    Type Project
    Department Economics
    Project ID ECO0519
    Price ₦3,000 ($9)
    Chapters 5 Chapters
    No of Pages 61 Pages
    Methodology Multiple Regression Analysis
    Reference YES
    Format Microsoft Word

    Related Works

    CHAPTER ONE 1.1 INTRODUCTION The major engine of growth and development of any economy is the capital market, which accommodate certain institutions for the creation, distribution and exchange of financial assets and management... Continue Reading
    ABSTRACT The study examined the impact of human capital and physical capital on economic growth in Nigeria between 1981 and 2016. In specific terms, the study investigated the extent to which government expenditure on education and health and gross capital formation influenced economic growth in Nigeria. Human capital is instrumental in tackling... Continue Reading
    ABSTRACT This research works examines the health indices and the Nigeria's economic Growth. In particular, the researcher is interested in knowing the type of correlation that exists between health indices and economic growth thereby, representing health indices such as infant mortality rate and... Continue Reading
    ABSTRACT The study investigates the empirical relationship between the capital market activities and economic growth in Nigeria. Using data covering the period 1980 to 2009, both statistical and econometric tools were employed to estimate the empirical relationships. The findings in the... Continue Reading
    ABSTRACT This research work is aimed at establishing and testing for existing relationship between the Nigerian Gross Domestic Product (GDP) and the indicators of the Nigerian Stock Market. Market capitalization and All Share Price Index are used as proxies for stock market indicators. Annual data set from 1985 to 2014 are used in the research... Continue Reading
    The Impact Of Capital Market On Economic Growth Of Nigeria  ABSTRACT Many efforts have been made towards understanding the relationship between capital market and the economic growth of Nigeria. The capital market of every economy is setup for the attainment of specific objectives which includes economic growth and stability, the contributions... Continue Reading
    ABSTRACT This project seeks to examine the impact of the Nigerian capital market on economic growth from the period of 2002-2010. this study investigate the techniques of bench marking of Nigeria capital market toward economic development of the nation and discuss the importance of bench marking... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1     Background of Study The capital market is a highly specialized and organized financial market and indeed essential agent of economic growth and development because of its ability to facilitate and mobilize saving and investment. To a great extent, the positive relationship between capital accumulation and real... Continue Reading
    (1988-2011) Table of Contents CHAPTER ONE Introduction 1.1 Background of study 1.2 Statement of the problem 1.3 Objectives of the study 1.4 Significance of the Study 1.6 Research Question 1.5 Research Hypothesis 1.6 Scope and Limitations of the study 1.7 Definition of Terms... Continue Reading
    CHAPTER ONE 1.0 INTRODUCTION 1.1 BACKGROUND OF THE STUDY The capital market is a highly specialized and organized financial market and indeed essential agent of economic growth because of its ability to facilitate and mobilize saving and investment. To a great extent, the positive relationship... Continue Reading