Stock Market Performance, Foreign Direct Investment and Economic Growth in Nigeria after the introduction of Structural Adjustment Programme
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2018, Vol 8, Issue 12
Abstract
The study examined stock market performance, foreign direct investment and economic growth in Nigeria after the introduction of the Structural Adjustment Programme. Annual time series data over the period of 31 years (1986 to 2016) and Johansen Co-integration technique were used. Granger causality test was also employed to determine the direction of causality between stock market performance, foreign direct investment and economic growth in Nigeria. The results suggest that there is long-term co-integration among economic growth, foreign direct investment (FDI), stock market development and inflation. The long-term elasticity estimates of the stock market performance showed expected sign and was statistically significant. In the short-run, stock market has significant positive relation to economic growth. The impact of FDI on growth is also significant and positive. The results also indicate that the negative impact of inflation on economic growth is statistically significant . The empirical findings of the study reveal that stock market development and FDI inflows play vital roles in the process of economic growth in Nigeria. Result of the OLS technique indicates that FDI had positive but insignificant impact on economic growth in Nigeria during the period. Available records showed that the substantial inflow of FDI into Nigeria during the period of study did not yield the expected result of rapid economic growth due to over-concentration of FDI on the oil and gas sector.
Authors and Affiliations
Gilbert Deinde Ifarajimi
Keywords
Related Articles
- EP ID EP596977
- DOI 10.6007/IJARBSS/v8-i12/5385
- Views 95
- Downloads 0
Reasoning Methods based on the Science of Mantiq for Islamic Research Methodology
In the context of this paper, the process of reasoning refers to the shift in thinking from assumed-to-be-true statements to true statements. This is also commonly known as logic. Logic is a science that can be used as t...
Malay Traditional Eidul Fitr Food Practice: The Mechanisms of Adoption and Adaptation Processes
This research study identifies the approaches that support the process of adoption and adaptation of Malay traditional Eidul Fitr food practice. An interview was carried out in this research which involved 30 women consi...
Instructional Practices in the Teaching of Literature: What Matters?
The primary aim of the study was to assess the instructional practices employed by teachers in classroom instruction in teaching of literature. In order to enhance, develop and explore in-depth the utilization of approac...
Leadership Style: Transformational and Employees’ Job Satisfaction in Sektor Khidmat Pengurusan dan Pembangunan at Jabatan Pendidikan Negeri Johor
To achieve job satisfaction among employees is the focal point of most organizations. It is because the issue of employee’s job satisfaction has been long debated due to its subjectivity. Therefore, an attempt has been...
Performance Measurement of Islamic and Conventional Banking in Malaysia Using Two-stage Analysis of DEA Model
Efficiency and effectiveness are two factors that have been considered in measuring the overall performance of any institution. The objective of this study is to measure the technical efficiency scores as well as the eff...