Social and Behavioral Sciences Commons^™

Stock Market Development And Economic Growth: Empirical Evidence From Nigeria, Obinna Franklin Ezeibekwe

2019 Awards for Excellence in Student Research and Creative Activity – Documents

Considerable debate exists on how stock exchanges affect economic growth. One line of research argues that stock market development is a positive and significant contributor to growth. On the other hand, other studies show that stock markets negatively affect growth or that they are not relevant contributors to economic growth. This paper seeks to identify the correlation between stock market development and long-run economic growth in Nigeria using the vector error correction modeling. Empirical results suggest that stock market development, as proxied by market capitalization to GDP ratio, does not contribute significantly to long-run economic growth in Nigeria. The implication …