CAPITAL MARKET AND INDUSTRIAL PERFORMANCE NEXUS: Empirical Evidence from Nigeria
- Peter F. Offum
- Chikulirim E. Ihuoma
- ( paper pages. 1 - 16 )
Abstract
This paper examined the causal relationship between the capital market and theperformance of the industrial sector in Nigeria from 1985 to 2015. The paperderived its theoretical basis from the finance-led growth hypothesis and theendogenous growth theory. For empirical analysis, the Phillips-Perron unit rootwas adopted to determine the time series characteristics of the variables, whilecausality was examined by employing the Granger causality test approach.Findings revealed that there is a unidirectional causality running from marketcapitalization ratio and total value of shares traded ratio to industrial performance.The paper recommends improved publicity on the strategic role of the capitalmarket as well as a strong regulatory mechanism for its efficient and smoothoperation in order to mobilise long term funds for industrial development inNigeria.
Citation
Peter F. Offum, Chikulirim E. Ihuoma.
2018.
"CAPITAL MARKET AND INDUSTRIAL PERFORMANCE NEXUS: Empirical Evidence from Nigeria"
The Nigerian Journal of Economic and Social Studies,
60 (3): 1 - 16.
JEL Classification
B4, C1, G2, L6, L7
