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AN EVALUATION OF THE ROLE OF THE NIGERIAN CAPITAL MARKET ON THE INDUSTRIALISATION OF THE NIGERIAN ECONOMY: 2002 – 2008 

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AN EVALUATION OF THE ROLE OF THE NIGERIAN CAPITAL MARKET ON THE INDUSTRIALISATION OF THE NIGERIAN ECONOMY: 2002 – 2008

ABSTRACT

One of the major economic objectives of every nation is to maintain a sustained increase in economic development, through a continuous rise of the economic indicators like the Gross Domestic product (GDP) and capital formation. For this to be achieved, industries must be built and adequately maintained. However, industrialization requires huge amount of fund which can be available through the pooling together of numerous savers fund. The Capital Market is the medium through which this fund can be sourced. In the light of the above, the study aimed at evaluating the role of the Nigerian Capital Market on the industrialization of the economy.  However, the objectives of the study include; examining the extent which the capital market has boosted industrialization in Nigeria; how capital market has enhanced capital formation; ascertain the rate of growth in capital market development; and to proffer recommendations. The study covered a period of seven years. Being an Expo Factor research design, Regression Analysis was used to test the hypotheses using the following variables; Gross Domestic Product (GDP), Industrial loan from the capital market, manufacturing sector Capital Utilization Rates .It was found out that the capital market had no significant positive impact on industrial development. On the other hand, it was found out that the capital market enhanced capital formation within this period. However, this was a matter of chance from the model, in that, the capital market cannot enhanced capital formation if it capital market had no significant positive impact on industrial development. 

AN EVALUATION OF THE ROLE OF THE NIGERIAN CAPITAL MARKET ON THE INDUSTRIALISATION OF THE NIGERIAN ECONOMY: 2002 – 2008

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