Economic Growth Arguments: The Role of the Capital Market
International Journal of Economics, Finance and Management Sciences
Volume 5, Issue 3, June 2017, Pages: 139-145
Received: Dec. 24, 2016; Accepted: Jan. 4, 2017; Published: Apr. 14, 2017
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Authors
Oke J. A., Department of Banking and Finance, Faculty of Financial Management Studies, The Polytechnic Ibadan, University Of Ibadan, Ibadan, Nigeria
Okunlola J. A., Department of Banking and Finance, Faculty of Financial Management Studies, The Polytechnic Ibadan, University Of Ibadan, Ibadan, Nigeria
Suberu O. J., Department of Banking and Finance, Faculty of Financial Management Studies, The Polytechnic Ibadan, University Of Ibadan, Ibadan, Nigeria
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Abstract
The study has examined critically the vital role capital market can play at improving economic growth. The total market capitalization and all share index were used as proxies for the independent variables while gross domestic product was used as proxy for economic growth, serving as dependent variable. The study considered the activities at the capital market as having value chain consequences that encapsulate the wheel of growth of the economy. As such, to test the validity the OLS regression analysis technique was adopted for empirical analysis. The result indicates a statistically significant relationship with total market capitalization while all share index showed a statistically insignificant relationship. In all, more instruments were recommended to be introduced in the market if the capital market would fully perform its function as lubricating channel of economic growth.
Keywords
Capitalization, All Share Index, Securities, Instruments, GDP
To cite this article
Oke J. A., Okunlola J. A., Suberu O. J., Economic Growth Arguments: The Role of the Capital Market, International Journal of Economics, Finance and Management Sciences. Vol. 5, No. 3, 2017, pp. 139-145. doi: 10.11648/j.ijefm.20170503.12
Copyright
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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