Financial Market Instruments and Economic Growth in Nigeria (1999-2019)

Abstract

The research looked at the relationship between proxies and financial market instruments and economic growth in Nigeria from 1999 to 2019. The research used secondary data from the Central Bank of Nigeria bulletin over a 30-year cycle in a quantitative and ex-post-facto analysis style (1999-2019). The data was evaluated using the ordinary least square estimator, regression analysis, and the unit root test. The research was carried out with the aid of the E-view statistics package. According to the results, Treasury bills have a statistically significant impact on GDP (p0.000), government bonds are irrelevant (p>0.5952), interest rates are statistically insignificant (p> 0.1089), and market capitalization is statistically significant (p>0.005). The report concluded that financial market success has a substantial impact on Nigeria's economic development for the year under consideration as a result of the results. The study concluded that policymakers could ensure an increase in market capitalization by promoting foreign direct investment involvement in the market, among other items.