Impact of Capital Market on External Sector Growth in Nigeria

Abstract

This study examines the impact of capital market on external sector growth in Nigeria for the period, 1995-2020. The Ordinary Least Square method (OLS) was employed in analyzing the time series data obtained from the CBN Statistical Bulletin. The results of the finding indicate that there is a significant link between capital market variables of market capitalization, value of transactions, listed equities and both export and external reserve in Nigeria. The results further reveal that all capital market variables were not separately and individually significant in relation to Export and External Reserve. The study therefore recommends that capital funds from the market should be put into production for export to earn enough foreign exchange to grow our external reserve while liberal policy measures should be formulated and implemented in the Capital Market to boost the growth of the external sector of the economy.

Keywords

• Capital market
• external reserve
• export
• market capitalization
• equity

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