An Assessment of Stock Market Volatility on Economic Growth and Development in Nigeria
1Aiya, Fidelis (Ph.D) & A. E. Omoregie2 (Ph.D)
Department of Public Administration, Ambrose Alli University, Ekpoma-Nigeria
Department of Accounting, Ambrose Alli University, Ekpoma
Email: mobendexcel@gmail.com
ABSTRACT
The study examines the relationship between stock market volatility and economic growth, using explanatory variables as inflation and interest rate. The Error Correction Model was employed to analyze the time series data from 1984-2012. The result revealed that stock market volatility, inflation rate and interest rate had a positive relationship with economic growth having reported a coefficient value of (0.000137), (0.035914), and (0.508464) respectively. It was however recommended that since the activities of the stock market increase the economic growth of Nigeria, the government should put more developmental measures in place in order to sustain the growth of the nation’s economy.
Keywords: Stock market Volatility, Economic Growth, Error Correction Model.
