Analysis of Economic Recovery Management and Market Capitalization in Nigeria

Abstract

This study is poised to critically analyze the impact of economic recovery management on market capitalization in Nigeria. The specific objectives of the study include: examining the effect of the Gross Domestic Product (GDP) growth rate on market capitalization, determining the influence of the Inflation rate on market capitalization, and assessing the impact of the Exchange rate on market capitalization. To achieve the objective of the study, the ex-post facto research design was adopted. The researcher used secondary data in collating the required data. The data were collected from CBN statistical bulletin. In testing the hypotheses, multiple regression analysis was used. The findings revealed that the GDP growth rate has a positive impact on market capitalization while the inflation rate and exchange rate harm market capitalization. The study recommends that the Nigerian government should devise a means of increasing the gross domestic product growth rate through effective utilization of their revenue allocation and expending. The study also recommends that during the economic recovery, the Nigerian government should ensure that their inflation rate is reduced. Inflation is the major economic factor that can be hampered by the economic recession can reduce market capitalization in Nigeria.