Capital Market Operations and its Impacts on Local Investments in Nigeria

Abstract

This study examines the Nigerian capital market Operations, and its impact on Local investments in Nigeria aswith The main theoretical model, growth results from innovations that allow local sectors to catch up with frontier technology. In developing countries, catching up requires the cooperation of a foreign investor who is familiar with the frontier technology and a domestic entrepreneur who is familiar with local conditions, In such a country, domestic capital market matters for innovation, and therefore growth, because it enables the local entrepreneur to put equity into this cooperative venture (Philippe Aghion et al 2009)and to empirically analyze the impact of the capital market operations on local investment. In analyzing the impact, the time series of data cover the period of 1972 to 2011. Gross domestic Product is regressed on the Capital market variables (Market capitalization, Number of Dealings and All share indexes) to check the long run effect of capital market activities on the growth of the economy neoclassical growth model is use to explain the source of growth in the economy. The relevance of the capitalmarket in the encouragement of local investment and economic development were highlighted. The paper concludes with recommendation to stem up investors confidence and activities in the capital market so that it could contribute significantly to the growth of local investment in Nigeria.