Economy

Economic indicators and the stock market performance in Nigeria have been one area of wide debate among the academia as well as the policy makers and implementers. The Nigerian economy and in particular the capital market have witnessed several developmental reforms in the past three decades. Many believe the reforms have rather had negative impact, while others believe otherwise. In view of the above, this recent study was embarked upon to ascertain empirically the relations between the reforms, stock market performance and economic growth over the periods of 1984 to 2014. The study employed the Generalized Method of Moment (GMM) among other technics for the analysis. Our result revealed that the reforms over the period of the study had positive significant impact on the stock market performance, and the stock market also had significant and positive effects on economic growth in Nigeria. The study concluded on the need to intensify reforms in the areas of market security, sensitization and widening the market participation zones to incorporate rural dwellers, as well as small and micro firms.