Abstract:
This study examines the effect of capital market on economic growth from the period of 2010-2019. The economic growth was proxy by Gross Demestic Product (GDP) while the capital market variables considered are Market Capitalization (MCAP) and Total Value of Stock (TVS). Data were collected from the Central Bank Statistical Bulletin for the period and were analyzed using the ordinary least square and descriptive statistics. The result of the findings showed that MCAP has positive and TVS has negative effect on economic growth of Nigeria. The study concludes that capital market has contributed immensely to the economic growth of Nigeria which has also guarantee investor fund. the study therefore recommends that improvement in the declining market capitalization by encouraging more foriegn investors to participate in the market, maintain state of the art technology like automated trading and settlement practice, electronic fund clearance and eliminate physical transfer of shares. Finally, there is also need to restore confidence to the market by regulatory authorities through ensuring transparency and fair trading transaction and dealing in the stock exchange.
