Capital Market Predictive Power on the Development of the Nigerian Economy: An Impulse Response and Variance Decomposition Approach

1
Uche Emmanuel
Uche Emmanuel
2
Ihezukwu
Ihezukwu
3
V. A
V. A
1 Abia State University, Uturu, Nigeria

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The study investigates the contributions of Nigeria’s capital market to the development of Nigeria economy. Most researchers focused on the capital market and growth nexus, while we deviated by focusing on the role played by the capital market in ensuring the reduction of unemployment and poverty in Nigeria. Specifically, we investigated the contributions of market capitalization (MCAP), the value of share traded (VST), and all share index (ASI) to the unemployment rate (UNPR) and poverty (NPI) reductions in Nigeria within the period 1981 to 2017. The data series used was obtained from the annual statistical bulletin of the central bank of Nigeria (CBN) and Nigeria stock exchange (NSE). Preliminary analyses of stationarity and cointegration tests revealed that the series was non stationary at levels, and cointegrated, respectively.

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No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Not applicable for this article.

Uche Emmanuel. 2019. \u201cCapital Market Predictive Power on the Development of the Nigerian Economy: An Impulse Response and Variance Decomposition Approach\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 19 (GJHSS Volume 19 Issue E9): .

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Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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GJHSS-E Classification: FOR Code: 349999p
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December 20, 2019

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English

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The study investigates the contributions of Nigeria’s capital market to the development of Nigeria economy. Most researchers focused on the capital market and growth nexus, while we deviated by focusing on the role played by the capital market in ensuring the reduction of unemployment and poverty in Nigeria. Specifically, we investigated the contributions of market capitalization (MCAP), the value of share traded (VST), and all share index (ASI) to the unemployment rate (UNPR) and poverty (NPI) reductions in Nigeria within the period 1981 to 2017. The data series used was obtained from the annual statistical bulletin of the central bank of Nigeria (CBN) and Nigeria stock exchange (NSE). Preliminary analyses of stationarity and cointegration tests revealed that the series was non stationary at levels, and cointegrated, respectively.

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Capital Market Predictive Power on the Development of the Nigerian Economy: An Impulse Response and Variance Decomposition Approach

Uche Emmanuel
Uche Emmanuel Abia State University, Uturu, Nigeria
Ihezukwu
Ihezukwu
V. A
V. A

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