CAPITAL MARKET DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA

The study is on capital market development and economic growth in Nigeria. The goal of the study is to ascertain the impact of capital market performance on economic growth in Nigeria. The study adopted the fully modified ordinary least square (FMOLS). The outcome of the study revealed that all capital market indicators (MCAP, VOT, VAT) except All share index (ASI) are positive and significant with economic growth in Nigeria. The study however recommends that market capitalization must be improved by encouraging more foreign investors to participate in the market, this will increase new issues which will automatically increase economic growth of Nigeria.