This paper seeks to examine the impact of the Nigerian capital market on its economic growth from the period of 1990-2010. This means that the performance of the stock market is an impetus for economic growth and development. The economic growth was proxied by Gross Domestic Product (GDP) while the capital market variables considered include; Market Capitalization (MCAP), Total New Issues (TNI), Value of Transactions (VLT), and Total Listed Equities and Government Stocks (LEGS).  Applying Johansen co-integration and Granger causality tests, results show that the Nigerian capital market and economic growth are co-integrated. This implies that a long run relationship exists between capital market and economic growth in Nigeria. The causality test results suggest a bidirectional causation between the GDP and the value of transactions (VLT) and a unidirectional causality from Market capitalisation to the GDP and not vice versa.  The F statistics is significant at 5 percent using a two-tailed test. On the other hand, there is no “reverse causation” from GDP to market capitalization. Furthermore, there is independence “no causation” between the GDP and total new issues (TNI) as well as GDP and LEGS.  This is a clear indication of the relative positive impact the capital market plays on the economic growth of the country. The evidence from this study reveals that the activities in the capital market tend to impact positively on the economy.  It is recommended therefore that the regulatory authority should initiate policies that would encourage more companies to access the market and also be more proactive in their surveillance role in order to check sharp practices which undermine market integrity and erode investors’ confidence.

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The Impact of the Nigerian Capital Market on Economic Growth (1990-2010)

This study investigated the role of stock market development on economic growth of Nigeria using a 15-year time series data from 1994 - 2008. The method of analysis used is Ordinary Least Square (OLS) techniques. The study measures the relationship between stock market development indices and economic growth. The stock market capitalization ratio was used as a proxy for market size while value traded ratio and turnover ratio were used as proxy for market liquidity. The results show that market capitalization and value traded ratios have a very weak negative correlation with economic growth while turnover ratio has a very strong positive correlation with economic growth. Also, stock market capitalization has a strong positive correlation with stock turnover ratio. This result implies that liquidity has propensity to spur economic growth in Nigeria and that market capitalization influences market liquidity. We should view with caution the notion that stock market size is not significant for economic growth since multicollinearity exists in the data used for this analysis. The government should make policies that boost the interest of domestic investors in Nigeria as this might spur investors’ interest and boost stock market activity. Keywords : Stock Market Development, Economic Growth, Time Series Analysis, Nigeria, Market capitalisation, liquidity.

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The Role of Stock Market Development on Economic Growth in Nigeria: A Time Series Analysis

The objective of this study was to empirically analyze the impact of the Nigerian capital market on her socio-economic development from 1981 to 2008. The socio-economic development was proxy by the...

An Empirical Analysis of the Impact of the Nigerian Capital Market on Her Socio-economic Development

The major challenge facing policy makers is how to allocate limited resources across the range of preferences that contribute to poverty reduction and economic development; including capital expenditures on health, education, infrastructure and recurrent expenditures. The aim of this study is to establish the relationship between healthcare expenditure, the health status and national productivity in Nigeria. The motivation for this study is the relevance of the subject matter. Most of the studies in this area have treated the impact of government’s expenditure on health in Nigeria, without linking such expenditure appropriately to productivity. This study is situated in applied economics and the relevance of applied research cannot be overestimated. Since the public and private health care sectors are broad, we focused on the public healthcare expenditure from 1999-2012 for objective analysis. We reviewed several literatures and also used secondary data to run regression. We also used questionnaires to elicit responses. Public health care expenditure is considered as the explanatory variable for health status, productivity and poverty reduction. However, the causal relationship is weak in the Nigeria scenario. If people are a country’s principal asset, then their health status defines the course of development, and their health characteristics determine the nature and direction of sustainable human development. Nigeria needs investment in health research and innovation. We recommend a universal healthcare coverage; a system that everyone can access healthcare. More so, in an increase ngly globalized world, it is recognized that high levels of investment in research and innovation are essential, both for economic competitiveness, and to yield innovation in areas such as healthcare and environmental technologies. These make tangible improvements to quality of life. The challenges and prospect of the primary healthcare delivery for rural development need further study.

	Key words: Federal Government of Nigeria, productivity, health status, reproductive health, sustainable development, primary healthcare.

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Health care expenditure, health status and national productivity in Nigeria (1999-2012)

In the paper, we examine the causal relationship and the direction of causality between stock market development and economic growth in Ghana, Kenya and Nigeria. In examining the causal relationship and the direction of causality, we used the Granger Causality test procedure as developed in Granger. The study regressed five indicators of stock market namely stock market capitalization (MC), stock turnover ratio (STO), stock traded value (TVL), number of listed securities (LS), and stock market index (MI) against the real gross domestic product (GDP) which is used as a proxy for economic growth. Using the 1989 – 2009 data sets, the empirical findings of the study show that there is no causal relationship between stock market development and economic growth in Ghana and Nigeria, but revealed a bidirectional causal relationship between stock market development and economic growth in Kenya. When MC was used as a proxy for stock market development, MC and LS were found to Granger cause economic growth. Bidirectional causality was found between STO and GDP. TVL was found to have a strong negative effect on GDP. Based on the results of the study, we recommend that policy makers and regulatory bodies should formulate and implement policies that will attract investors and avail the real sector of the economy the much needed fund for production and encourage listing of companies that contribute largely to GDP in the nation stock exchange.

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Stock Market and Economic Growth in Ghana, Kenya and Nigeria

The paper is an appraisal of the impact of capital market efficiency on economic growth in Nigeria, using time series data on market capitalization, money supply, interest rate, total market transaction and government development stock that ranges between 1961 to 2004. The model specification for the analysis of data is multiple regression and ordinary lest squares estimation techniques. The result of the study shows that the capital market in Nigeria has the potentials of growth inducing, but it has not contributed meaningfully to the economic growth of Nigeria. This is as a result of low market capitalization, low absorptive capitalization, illiquidity, misappropriation of funds among others. The empirical test indicates that, these variables satisfied the economic apriori and are statistically significant except total transactions and money. Thus it was concluded and recommended that, the capital market remain one of the mainstream in every economy that has the power to influence economic growth, hence the organize private sector is encourage to invest in it. This will enable the capital market improve its illiquidity status for economic growth and development. Therefore the government must contribute in order to achieve these objectives through investing government securities in productive sectors and relaxing laws that spell threat to the capital market.

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Appraisal of Capital Market Efficiency on Economic Growth in Nigeria

The study seeks to examine the relation ship between levels of government health care expenditure and health status in Nigeria. The paper utilized several estimation techniques (Cobb–Douglas production function, Semi-logarithmic function, exponential and semi-logarithmic function) using data from 1980-2003. The result of the research reveal that life expectancy and literacy rate were negatively correlated with health care expenditure both in the short and long-run, income elasticity of health care expenditure was below low unity both in the short-run and long-run. The study concluded that health is a necessary good in Nigeria. In other to improve the health status of the population the Government needs to increase funding for health, reduce the inequality in the budgetary distribution of health expenditure and fast track the implementation of the Primary Health Care bill.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1540279_code960953.pdf?abstractid=1540279&mirid=1&type=2

Health Care Expenditure in Nigeria: Does the Level of Government Spending Really Matter?

In Nigeria, health indicators have continued to experience downward spiral movement despite government continued budgetary allocation to funding the health sector. This downward spiral movement seems to pose a question whether government expenditure on health alone is significant enough to provoke improvement in the health status of the population, or rather, if there are other social/economic factors necessary to cause this desired improvement in health status which have hitherto been neglected? The paper had utilized the Granger causality test and Vector Error Correction Model (VECM) to investigate the causal direction and long-run relationship between government health expenditure, poverty and health status, in Nigeria. The study established that there exists a strong causal uni-directional relationship running from life expectancy to poverty in Nigeria. This paper contends that health improvements/expenditure when concentrated among people living close to or below the poverty line, a “trickle-down” mechanism and redistribution of income will lead to poverty reduction and illnesses. Thus, increasing budgetary allocation to funding health sector alone without reducing poverty level, would not be sufficient enough to improve the health and social status of the population. A long-run relationship was also found to exist between poverty and health status. The paper did not find a significant long-run relationship existing between health status and government health expenditure. The paper therefore suggests that policies that can improve life expectancy should be such as would promote adult literacy level, reduce the poverty level, reduce income disparity and improve income distribution among the vulnerable and poor rural population of the society.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1540303_code960953.pdf?abstractid=1540303

Poverty, Health Expenditure, and Health Status: A Long Term Perspective with Evidence from Nigeria

This paper examines the consumption pattern, trends and rate of poverty in developing economies with particular reference to Nigeria. Low level of income has impacted on the rate of consumption vis-a-vis economic growth and improved standard of living. The ordinary least square (OLS) technique was adopted with the use of time series data on consumption rate, unemployment, inflation, economic growth, dependency ratio, adult literacy as well as poverty. The study reveals that these macroeconomic fundamentals have relationship and impact on
consumption rate. In view of the plagues associated with poverty, dynamic poverty alleviation policies devoid of conflict of goals should be sustained in line with meaningful income equality put in place by government so as to avoid the evils of poverty and poor standard of living. A negation of this, the paper argues, impacts on the consumption pattern of consumers and leads to poor standard of living.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1332621_code960953.pdf?abstractid=1332621&mirid=1

Jude U. Bassey

Papers

Appraisal of Capital Market Efficiency on Economic Growth in Nigeria

Health Care Expenditure in Nigeria: Does the Level of Government Spending Really Matter?

Poverty, Health Expenditure, and Health Status: A Long Term Perspective with Evidence from Nigeria

Consumption pattern and rate of poverty in Developing Countries: Evidence from Nigeria