Stock Market Performance and Economic Growth in Nigeria: An Empirical Analysis

Abstract

The study examines the impact of stock market performance on economic growth in Nigeria, from 1985 to 2018, based on the theoretical framework of Harrod-Domar analysis of savings and investment. The data requirements for the study was a secondary data and the methodology of the research was built on the classical analysis of Augmented Dickey-Fuller unit root test, Johansen co-integration analysis and vector error correction mechanism in order to examine the direction and magnitude of the relationship between stock market performance and economic growth in Nigeria. The findings of the study reveal a positive, long-run relationship between stock market performance (measured by market Capitalisation, equity and value-traded) and economic growth in Nigeria over the study period.