The Impact of Capital Market Behaviour on a Nation’s Economic Growth: a Case of Nigeria

Abstract

The Nigerian capital market behaviour in relation to its economic development efforts is hamstrung by factors like information asymmetric, regulation overbearing, inconsistency and insider trading which had been the hindering factors in the development of the market. Suffice to say that capital market is an economic barometer usually use to detect the economic pulse of any nation in their quest to toe the line of thresh hold in the comity of nations; which spurred my interest in the behaviour of capital market as it relate to its nation's economic growth and development function with the key area of human behaviour that is constantly hindering the market development in consonance with behavioral finance as it plays complementary role with long held efficient market hypothesis. Though, the impact of the stock market on the Nigeria economic growth rate is found to be insignificant due to structural rigidities that characterized the economic policies. The market plays a key role in helping to accelerate the Nigerian economic growth and development. Therefore recommend that the adoption of strategic management principles and appropriate enabling rules and regulations should be applied to minimize regulatory inconsistency and policy somersault with negative consequences.

Socio-economic governance and economic growth in Nigeria

“…Building upon the work of Adeyemi and Ogunsola (2016), equation ( 1) is augmented to include the effects of public expenditure on education (PEE), health and R&D, as shown in equation ( 2 1), an extended form is derived as equation 3:…”

“…Empirical studies have investigated the relationship between investment in human capital development and economic growth (Mankiw et al, 1992;Klenow and Rodr ıguez-Clare, 1997;Adamu, 2002;Chete and Adeoye, 2001;Mankiw et al, 1992;Adawo, 2011;Ogujiuba, 2013;Olalekan, 2014;Obi and Obi, 2014;Ajadi and Adebakin, 2014;Oladeji, 2015;Borojo and Jiang, 2016;Adeyemi and Ogunsola, 2016;Attahir et al, 2020). Many of these studies argue that investment in education and health positively influences economic growth (Mankiw et al, 1992;Klenow and Rodr ıguez-Clare, 1997;Adamu, 2002;Chete and Adeoye, 2001;Mankiw et al, 1992).…”