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Stock Market and Sustainable Economic Growth in Nigeria

Author

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  • Erasmus L Owusu

    (Data Science, Nielsen, Oxford OX3 9RX, UK)

Abstract

This paper examines the relationship between stock market evolution and sustainable economic growth in Nigeria. The study employs Auto-Regressive Distributed Lag (ARDL)-bounds testing approach and a combined stock market indicators index to examine the relationship. The paper finds that, in the long run, stock markets have no positive and at best mixed effect on economic growth in Nigeria. This finding supports the numerous past studies, which have reported negative/mixed or inconclusive results on the effects of stock markets on economic growth. The paper, therefore, concludes that, there is the need for increasing financial deepening and the removal of bottlenecks in the financial sectors of the economy by providing further public and institutional education on the value of stock markets for economic development.

Suggested Citation

  • Erasmus L Owusu, 2016. "Stock Market and Sustainable Economic Growth in Nigeria," Economies, MDPI, vol. 4(4), pages 1-13, November.
    • Handle: RePEc:gam:jecomi:v:4:y:2016:i:4:p:25-:d:82099
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    References listed on IDEAS

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    Cited by:

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    2. ANYANWU, Felicia Akujinma & ANANWUDE, Amalachukwu Chijindu & OKOYE, Ngozi Theodora, 2017. "An Empirical Assessment of the Impact of Commercial Banks’ Lending on Economic Development of Nigeria," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 1(1), pages 14-29.
    3. Isaac Azubuike Ogbuji & Ekundayo Peter Mesagan & Yasiru Olorunfemi Alimi, 2020. "The Dynamic Linkage between Money Market, Capital Market and Economic Growth in Ghana: New Lessons Relearned," Econometric Research in Finance, SGH Warsaw School of Economics, Collegium of Economic Analysis, vol. 5(2), pages 59-78, December.
    4. Olwetu Fusthane & Kapingura F M, 2017. "Weak Form Market Efficiency of the Johannesburg Stock Exchange: Pre, During and Post the 2008 Global Financial Crisis," Journal of Economics and Behavioral Studies, AMH International, vol. 9(5), pages 29-42.
    5. Md. Qamruzzaman & Wei Jianguo, 2017. "Financial innovation and economic growth in Bangladesh," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 3(1), pages 1-24, December.
    6. Nguyen, Trang & Chaiechi, Taha & Eagle, Lynne & Low, David, 2020. "Dynamic impacts of SME stock market development and innovation on macroeconomic indicators: A Post-Keynesian approach," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 327-347.

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