IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 11 NO. 1 2025
DOI: 10.56201/ijssmr.vol.11no1.2025.pg.98.109

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Capital Market and Transportation Sector Growth: An Empirical Assessment of the Effects on Transportation Sector in Nigeria

Dr Ezebunwo NYECHE

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Abstract

The study investigated the effects of capital market on transportation sector growth in Nigeria over a period of thirty-three years (i.e. from 1990 to 2022). Market capitalization, value of traded stocks, turnover ratio and all share index were used as the proxies of capital market (independent variables) while transportation GDP growth rate was used as the proxy of transportation sector growth (dependent variable). The study adopted ex-post facto research design and made use of times data sourced mainly from Central Bank of Nigeria (CBN) statistical bulletin. The techniques of data analysis adopted were Augmented Dickey-Fuller (ADF) approach of unit root and Ordinary Least Square (OLS) regression technique. The findings of the study showed that market capitalization, value of traded stocks and all share index have positive and significant effect on transportation GDP growth rate in Nigeria while turnover ratio has an insignificant positive effect on transportation GDP growth rate in Nigeria. Based on the findings, the study concluded that capital market is statistically significant and has a significant positive effect on transportation sector growth in Nigeria. The study recommended among others that government should implement policies that attract both local and foreign investments into the transportation sector, encouraging companies to list on the Nigerian Stock Exchange. By increasing the market capitalization of transportation companies, the sector will have greater access to capital for expansion and modernization, which can lead to improved infrastructure and services, ultimately boosting the sector's growth rate.

keywords:

Capital Market, Market Capitalisation, Turnover Ratio, All Share Index, Transport

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