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The Impact Of Capital Market On The Economic Growth Of Nigeria
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1.2 STATEMENT OF THE PROBLEM
There is abundant evidence that most
Nigerian businesses lack long-term capital. The business sector has
depended mainly on short-term financing such as overdrafts to finance
even long-term capital. Based on the maturity matching concept, such
financing is risky. All such firms need to raise an appropriate mix of
short- and long-term capital (Demirguc-Kunt& Levine 1996). Most
recent literatures on the Nigeria capital market have recognized the
tremendous performance the market has recorded in recent times. However,
the vital role of the capital market in economic growth and development
has not been empirically investigated thereby creating a research gap
in this area. This study is undertaken to examine the contribution of
the capital market in the Nigerian economic growth and development.
Aside the social and institutional factors inhibiting the process of
economic development in Nigeria, the bottleneck created by the dearth of
finance to the economy constitutes a major setback to its development.
As a result, it is necessary to evaluate the Nigerian capital market.
1.3 RESEARCH QUESTIONS
This research was guided by the following research questions:
i. What is the performance of the capital market in relation to economic growth in Nigeria?
ii. How could the capital market through its crucial role stimulate economic growth in Nigeria?
1.4 OBJECTIVES OF THE STUDY
The
broad objective of this study examined the activities and performance
of Nigerian capital market. The specific objectives of the study are as
follows:
1. To evaluate the performance of the capital market in relation to the economic growth in Nigeria.
2.
To make recommendations as to how the operations of the market could be
improve to boost economic growth and development of Nigeria.
1.5 HYPOTHESIS OF THE STUDY
The hypothesis that would be tested in the course of this research is stated below as:
H0: That the capital market operations have no impact on Nigerian economic growth. 1.6 SIGNIFICANCE OF THE STUDY
The
study explored the impact or effectiveness of capital market
instruments on Nigerian economic growth. Though the scope of the study
was limited to the capital market, it is hoped that the exploration of
this market will provide a broad view of the operations of the capital
market. It will contribute to existing literature on the subject matter
by investigating empirically the role, which the capital market plays in
the economic growth and development of the country. The main importance
of this study is that it will provide policy recommendations to
policy-makers on ways to improve operations and activities of the
capital market.
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ABSRACT - [ Total Page(s): 1 ]This research work was embarked upon with a view to determine the impact of the capital market on the economic growth of Nigeria. The capital market was set up to achieve specific objectives which would boost the economy such as encourage domestic savings and increasing the quantity and quality of investments. The capital market offers access to a variety of financial instruments which are very essential for government and other institutions in need of long term funds. The data was obtained from ... Continue reading---
