Josephine Chinelo ENE, Maurie Nneka NWALA, Theresa UDENWA | Volume: 6(1)2021 | Page: 142-163
EFFECT OF SELECTED MACROECONOMIC FACTORS ON STOCK MARKET CAPITALISATION IN NIGERIA: A NON-LINEAR APPROACH
This paper investigated the interaction between selected macroeconomic factors (exchange rate, money supply and trade openness) and stock market capitalization using the non-linear autoregressive distributed lag (NARDL) model and the Error Correction Model (ECM) for the period 2000 to 2019. The secondary data used were extracted from CBN statistical bulletin 2019 and Nigeria bureau of statistics reports. The findings revealed that only exchange rate and money supply had a long-run effect on market capitalization. The findings also revealed that at 10% significance level all the factors Keywords: Exchange rate, Money supply, Trade openness, Market capitalization, NARDL