Abstract
The study examines the long run and causal relationship between both stock market development and economic growth in Nigeria using annual data from 1980-2010. Vector Error Correction Model (VECM) and Cointegration technique of analysis were employed to analyze the data and draw policy inferences. The study found that stock market development as well as banking activity was cointegrated with economic growth in Nigeria. That is, there is a long run relationship among these variables in Nigeria. The result from VECM showed that economic growth granger causes both stock market development and banking activity in Nigeria. The study therefore, strongly recommends that policy makers should lay emphasis on the economic growth through the appropriate regulatory and macroeconomic policies to remove all constraints to the acceleration of the sustainability of economic growth and development in Nigeria.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
