The study is designed to examine the impact of banking and the stock exchange on the economic development of Nigeria and the interplay of relationship between these two major financial institutions as agents of economic development between 2006 and 2016. The independent variables were: Market Capitalization, Total Securities Listed (for the Nigerian Stock Exchange) and Total Bank Deposit and Domestic Credit to Private Sector by (for Banks). Gross Domestic Product, the barometer of economy development, is the dependent variable. These secondary data were sourced from National Bureau of Statistics (NBS), Nigeria Stock Exchange publications and various issues of Central Bank Nigeria statistical bulletin. Data were analyzed using OLS, regression analysis. From the analysis performed, the development in Nigeria’s stock market has positive significant relationship with economic growth both in short and long run. The result dispelled the adeptness of Nigeria stock market to propel growth. GDP = -3614.57 + 0.288 MC + 4.67 TBC + e. Result of regression of each agent variables to the national GDP showed stock market to be dominant. This is rather surprising because if the financial performance indicators of the banks and stock exchange indices were something to go bye, they ought to be moving in the same direction and relative degree as development catalytic agents. Policy makers must urgently look into this.
| Published in | Journal of Business and Economic Development (Volume 3, Issue 3) |
| DOI | 10.11648/j.jbed.20180303.12 |
| Page(s) | 68-76 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2018. Published by Science Publishing Group |
Market Capitalization, Liquidity, Regression, Economic Growth
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APA Style
Rebecca Folake Bank-Ola, Comfort Bosede Olopade, Akinyele Akinwumi Idowu, Nureni Adekunle Lawal. (2018). Synergy Between the Nigeria Banking Sector and the Nigerian Stock Exchange as Nigeria Economy Development Agents (2007-2016). Journal of Business and Economic Development, 3(3), 68-76. https://doi.org/10.11648/j.jbed.20180303.12
ACS Style
Rebecca Folake Bank-Ola; Comfort Bosede Olopade; Akinyele Akinwumi Idowu; Nureni Adekunle Lawal. Synergy Between the Nigeria Banking Sector and the Nigerian Stock Exchange as Nigeria Economy Development Agents (2007-2016). J. Bus. Econ. Dev. 2018, 3(3), 68-76. doi: 10.11648/j.jbed.20180303.12
AMA Style
Rebecca Folake Bank-Ola, Comfort Bosede Olopade, Akinyele Akinwumi Idowu, Nureni Adekunle Lawal. Synergy Between the Nigeria Banking Sector and the Nigerian Stock Exchange as Nigeria Economy Development Agents (2007-2016). J Bus Econ Dev. 2018;3(3):68-76. doi: 10.11648/j.jbed.20180303.12
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Download@article{10.11648/j.jbed.20180303.12,
author = {Rebecca Folake Bank-Ola and Comfort Bosede Olopade and Akinyele Akinwumi Idowu and Nureni Adekunle Lawal},
title = {Synergy Between the Nigeria Banking Sector and the Nigerian Stock Exchange as Nigeria Economy Development Agents (2007-2016)},
journal = {Journal of Business and Economic Development},
volume = {3},
number = {3},
pages = {68-76},
doi = {10.11648/j.jbed.20180303.12},
url = {https://doi.org/10.11648/j.jbed.20180303.12},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20180303.12},
abstract = {The study is designed to examine the impact of banking and the stock exchange on the economic development of Nigeria and the interplay of relationship between these two major financial institutions as agents of economic development between 2006 and 2016. The independent variables were: Market Capitalization, Total Securities Listed (for the Nigerian Stock Exchange) and Total Bank Deposit and Domestic Credit to Private Sector by (for Banks). Gross Domestic Product, the barometer of economy development, is the dependent variable. These secondary data were sourced from National Bureau of Statistics (NBS), Nigeria Stock Exchange publications and various issues of Central Bank Nigeria statistical bulletin. Data were analyzed using OLS, regression analysis. From the analysis performed, the development in Nigeria’s stock market has positive significant relationship with economic growth both in short and long run. The result dispelled the adeptness of Nigeria stock market to propel growth. GDP = -3614.57 + 0.288 MC + 4.67 TBC + e. Result of regression of each agent variables to the national GDP showed stock market to be dominant. This is rather surprising because if the financial performance indicators of the banks and stock exchange indices were something to go bye, they ought to be moving in the same direction and relative degree as development catalytic agents. Policy makers must urgently look into this.},
year = {2018}
}
TY - JOUR T1 - Synergy Between the Nigeria Banking Sector and the Nigerian Stock Exchange as Nigeria Economy Development Agents (2007-2016) AU - Rebecca Folake Bank-Ola AU - Comfort Bosede Olopade AU - Akinyele Akinwumi Idowu AU - Nureni Adekunle Lawal Y1 - 2018/11/16 PY - 2018 N1 - https://doi.org/10.11648/j.jbed.20180303.12 DO - 10.11648/j.jbed.20180303.12 T2 - Journal of Business and Economic Development JF - Journal of Business and Economic Development JO - Journal of Business and Economic Development SP - 68 EP - 76 PB - Science Publishing Group SN - 2637-3874 UR - https://doi.org/10.11648/j.jbed.20180303.12 AB - The study is designed to examine the impact of banking and the stock exchange on the economic development of Nigeria and the interplay of relationship between these two major financial institutions as agents of economic development between 2006 and 2016. The independent variables were: Market Capitalization, Total Securities Listed (for the Nigerian Stock Exchange) and Total Bank Deposit and Domestic Credit to Private Sector by (for Banks). Gross Domestic Product, the barometer of economy development, is the dependent variable. These secondary data were sourced from National Bureau of Statistics (NBS), Nigeria Stock Exchange publications and various issues of Central Bank Nigeria statistical bulletin. Data were analyzed using OLS, regression analysis. From the analysis performed, the development in Nigeria’s stock market has positive significant relationship with economic growth both in short and long run. The result dispelled the adeptness of Nigeria stock market to propel growth. GDP = -3614.57 + 0.288 MC + 4.67 TBC + e. Result of regression of each agent variables to the national GDP showed stock market to be dominant. This is rather surprising because if the financial performance indicators of the banks and stock exchange indices were something to go bye, they ought to be moving in the same direction and relative degree as development catalytic agents. Policy makers must urgently look into this. VL - 3 IS - 3 ER -
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