IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 8 NO. 4 2023
DOI: https://doi.org/10.56201/ijefm.v8.no4.2023.pg130.144

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Macroeconomic Variables and Stock Market Development in Africa: Evidence from Nigeria

Emmanuel, Adah John, Benson Emmanuel PhD

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Abstract

This study examines the macroeconomic determinants of stock market development in the Nigerian economy. This was aimed at ascertaining how INF representing real interest rate, GDP representing gross domestic product per capita, and BMS representing broad money supply has stimulate the stock market development in Nigeria. Historical data was collated and estimated employing the ARDL form of Ordinary Least Squares (OLS) technique. The empirical results indicate that only inflation had a negative and significant impacts on stock market development while real output and money supply exerted positive but insignificant impacts. On the basis of the findings of this study, the following recommendations are made: The monetary authorities have to regularly review their monetary policy direction to bring inflation lower than it is; Regulatory authorities and policy makers should ensure that there is general stability in money supply and exchange rates, while trying to put the inflationary trends under control and at the same time maintain a stable interest rate regime in the economy in order to achieve improvements in stock market performance to bring about desired economic growth and national development.

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References:

Alam, M and Uddin G. 2009. Relationship between Interest Rate and Stock Price: Empirical
Evidencefrom Developed and Developing Countries. International Journal of Business and
Management, 4:43-51.

Asaolu, T. O., and Ogunmuyiwa, M.S. (2010).An econometric analysis of the impact of
macroeconomic variables of stock market movement in Nigeria. Asian Journal of
Business Management, 3, 72-78.
Badullahewage, S. U. (2019). Financial i

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