The nexus between stock exchange market growth and economic performance: evidence from the Nigerian economy
Abstract This study was conducted to uncover the nexus between stock exchange market growth and economic performance in Nigeria from 1987 to 2019. The study adopted Johansen cointegration and vector error correction estimation techniques. It was found that stock exchange market growth determines the economic performance of Nigeria in the long run. However, in the short run, it was found and concluded that stock exchange market growth though promotes economic performance, its impact was insignificant. The study thus recommended that ongoing reforms in the Nigerian financial sector should be continued and extended to the capital market. Capital market reforms that will reduce intermediation costs, floating new issues and promoting the invention of modern financial instruments should be pursued in the capital market. Keywords: Stock Exchange, Economic Performance, Growth, Financial Sector, VECM JEL Classification: G23, 047, B2