Macroeconomic Determinants Of Stock Market Development In Nigeria: (1981-2017)

For the stock market to contribute effectively and efficiently in its role of capital formation, the macroeconomic environment in which it operates must be conducive and growth supportive. Hence, this study examined macroeconomic determinants of stock market development in Nigeria for the period of 1981 to 2017. The study employed the ARDL bound testing technique to investigate the long run and short run relationship between the dependent variable (stock market development) and independent variables (GDP, banking sector development, stock market liquidity, foreign direct investment, inflation rate and savings rate). The result of the study found out that in both the short run and long run, key macroeconomic determinants of stock market development in the context of the Nigerian Stock Exchange Market are banking sector development, stock market liquidity, foreign direct investment and to an extent the income level (GDP). While inflation rate which measures macroeconomic stability, and savings rate do not significantly explain stock market development. This study therefore recommended amongst others that policymakers should strive to sustain the stability of the economy in order to promote the growth of stock market development in the short run and long run

EXTERNAL DEBT OR FOREIGN DIRECT INVESTMENT: WHICH HAS GREATER SIGNIFICANT ECONOMIC IMPACT ON NIGERIA?

This study assesses the significant economic impact of external debt and foreign direct investment on the growth of Nigeria for a period stretching from 1990 to 2013. The model specifies gross domestic product (economic growth) as dependent on outstanding value of external debt and foreign direct investment inflows. Estimating the model using the error correction modelling approach, the findings show that external debt is negatively but insignificantly related to economic growth while foreign direct investment is also negatively but significantly related. Foreign direct investment is indicated to be significant for economic growth; therefore, inflows through foreign direct investment tend to have more impact on the Nigerian economy than inflows from external debt

EXTERNAL DEBT OR FOREIGN DIRECT INVESTMENT: WHICH HAS GREATER SIGNIFICANT ECONOMIC IMPACT ON NIGERIA?

This study assesses the significant economic impact of external debt and foreign direct investment on the growth of Nigeria for a period stretching from 1990 to 2013. The model specifies gross domestic product (economic growth) as dependent on outstanding value of external debt and foreign direct investment inflows. Estimating the model using the error correction modelling approach, the findings show that external debt is negatively but insignificantly related to economic growth while foreign direct investment is also negatively but significantly related. Foreign direct investment is indicated to be significant for economic growth; therefore, inflows through foreign direct investment tend to have more impact on the Nigerian economy than inflows from external debt

Effect of Financial Liberalization on the Performance of Informal Capital Market

This study examines the effects of financial liberalization on the corporate performance of informal capital market in Nigeria {Unity (IFE) NUT Cooperative Investment and Credit Society as a case study}. It employs the Ordinary Least Square method of multiple regression analysis for the period of ten years (2001-2010). Three models were formulated, the first, proxied financial liberalization variable (saving rate) with loan granted by informal capital market in Nigeria and saving mobilized by the market. The second, revealing a relationship between financial liberalization variable (lending rate) with deposit mobilised by informal capital market in Nigeria and loan granted by the market while the last, depicting relationship between financial liberalization variables (saving and lending rates), deposit mobilised with loan granted by informal capital market in Nigeria and net surplus of the market (being non-profit making institutions). This work concluded that financial liberalization has significant effect on deposit mobilised and loan granted by the market but did not have significant effect on their net surplus. It therefore, recommends that the market should be supervised, formulate policies that would enhance the performance of informal financial sector in Nigeria coupled with the reduction of the gap between lending and saving rates of banks. Keywords: Financial Liberalization, Informal Capital Market, Unity (IFE) NUT Cooperative Investment and Credit Society, Ordinary Least Square (OLS) Metho