THE IMPACT OF CAPITAL MARKET ON THE ECONOMIC DEVELOPMENT IN NIGERIA (1985-2011)

ABSTRACT

Many efforts have been made towards understanding the relationship between capital market and the economic development of Nigeria. The capital market of every economy is setup for the attainment of specific objective which includes economic growth and stability; Data were collected and analyzed using ordinary least square analysis. These include Ftest, to determine the significance of the entire regression plan, T test to test for the significance of the individual variables and the second order test, which include test for autocorrelation, normality test and heteroscedasticity. The result of the study shows that the capital market has a positive and significant impact on the countrys economic development. On the strength of this evidence, this work recommends that government should introduce policies to motivate and encourage the market. If these recommendations are efficiently implemented, the effectiveness of the Nigerian capital market will be enhanced.