An auto-regressive distributed lag model approach to evaluating the impact of stock market performance on economic growth in Nigeria

This study examines the impact of stock market performance on economic growth in Nigeria between 1984 and 2019. Auto Regressive Distributed Lag and Bounds Test were adopted as the estimating techniques to verify the existence of long-run relationship between stock market and economic growth in Nigeria. Data used were extracted from the central bank of Nigeria statistical bulletin of 2019. The empirical results revealed that in the long-run, Nigerian economic growth responds positively to the impact of Nigerian stock market. The findings also showed that there is positive relationship between market capitalization and economic growth as well as the existence of a positive relationship between all share index and economic growth of Nigeria within the period under review. Market capitalization is highly significant and appears to be the major stock market indicator. Based on these findings government should address the shortage of investment assets through effective policy measures that enhance the performance of stock market in Nigeria and to restore confidence of the investors.