Assets Pricing Channel and Economic Growth: Evidence from Nigeria

Godwin; Nkpe Ph.D

doi:10.56201/jafm.vol.11.no12.2025.pg129.149

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Assets Pricing Channel and Economic Growth: Evidence from Nigeria

Godwin, Nkpe Ph.D

Abstract

This study examined assets pricing channel and Economic Growth in Nigeria. The objective was to determine the extent to which assets pricing channel of monetary policy affects economic growth. Time series data were sourced from Central Bank of Nigeria Statistical Bulletin. Real gross domestic product was modeled as the function of Treasury bill rate, monetary policy rate, Savings rate and Money market rate. . Multiple regression models were formulated to examine the relationship between the dependent and the independent variables. Descriptive statistics, Granger causality test and Johansen co-integration test in the error correction model setting were employed. Durbin Watson, ? Coefficient, R-Square (R2) and F-Statistics were used to determine the relationship between the dependent and independent variables as formulated in the regression models. The study found that 66.6 percent variation in the growth of Nigeria economic growth could be traced to variation in assets pricing channel. The F-statistic and probability found to be statistically significant in explaining the relationship between asset pricing channel and Nigeria economic growth, the variables were all stationary at difference, the cointegration result proved that there was linear combination of the variables in the long run while the granger causality test proved the three were no causal relationship among the variables. Beta coefficient of the variables proved that money market rate was statistically significant while other variables were statistically not significant in determining variation in the growth of Nigeria economy. The study concludes that assets pricing channel determine Nigeria economic growth. The study recommends that the central bank and financial markets regulators should devise strategies to encourage more economic agents, preferably the domestic investors, to participate in the stock market.

Keywords

Assets Pricing ChannelEconomic GrowthMonetary Policy RateNigeria

References

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Assets Pricing Channel and Economic Growth: Evidence from Nigeria

Abstract

Keywords

References

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