Effects of Financial Market on Nigerian Economic Performance: Further Estimation with Distributed Lag Model
This study was carried out to determine the effect of financial market on Nigerian economic performance. More specifically, this study sought to ascertain if money market and capital market affect economic performance in Nigeria and if there is causality between each of these markets and economic performance in Nigeria. It employed distributed lag model and granger causality to analyse these effects with data sourced from the Central Bank of Nigeria. The result showed that money market has a positive significant impact (p < 0.05) on Nigerian economic performance while capital market is significant (p < 0.05) but impacts negatively on its performance. The researchers, therefore, recommended that government should enhance investment environment in both the money market and the capital market and that government and other stakeholders should further examine the capital market to ascertain why it is impacting negatively on economic performance.