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Openness, Stock Market Development, and Industrial Growth in Nigeria

Author

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  • R. I. Udegbunam

    (Department of Economics and Statistics, Faculty of Social Sciences, University of Benin, Nigeria.)

Abstract

In recent years the Nigerian economy has been moving towards increased liberalisation, greater openness, and greater financial development. This paper examines the implications of these developments for industrial growth in Nigeria. A simple model, which relates industrial output growth to openness, stock market development, and a battery of control variables, is specified and estimated, using annual data covering the period 1970– 1997. The empirical evidence strongly suggests that openness to world trade and stock market development are among the key determinants of industrial output growth in Nigeria. The other important factors are human capital input, non-military expenditure, gross domestic product (GDP), which reflects the size of physical capital, and inflation.

Suggested Citation

  • R. I. Udegbunam, 2002. "Openness, Stock Market Development, and Industrial Growth in Nigeria," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(1), pages 69-92.
  • Handle: RePEc:pid:journl:v:41:y:2002:i:1:p:69-92
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    1. repec:dug:actaec:y:2017:i:3:p:39-55 is not listed on IDEAS
    2. Shahbaz, Muhammad & Ur Rehman, Ijaz & Zainudin, Rozaimah, 2013. "Macroeconomic Determinants of Stock Market Capitalization in Pakistan:Fresh Evidence from Cointegration with unknown Structural breaks," MPRA Paper 52490, University Library of Munich, Germany, revised 24 Dec 2013.
    3. Pradhan, Rudra P. & Arvin, Mak B. & Bahmani, Sahar, 2015. "Causal nexus between economic growth, inflation, and stock market development: The case of OECD countries," Global Finance Journal, Elsevier, vol. 27(C), pages 98-111.

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