Festus Elugom Ubogu


This study was prompted to investigate empirically the relationship between capital market development and industrial growth in Nigeria utilizing annual time series data covering the period of 1985-2017. The study adopted both descriptive and analytical tools. The descriptive and analytical tools. The descriptive methods were used to analyze trend performance of the variable captured in the study. The analytical tools employed modern econometric techniques such as the unit root test, co integration test granger causality test, the result showed that there is a bi-directional relationship between industrial output and market capitalization and between industrial output and number of deals, but a unidirectional relationship running from industrial sector development to value of transaction. The result of the short run dynamics revealed that capital market has positive and significant impact on industrial output in Nigeria via market capitalization and number of deals. Output in Nigeria during the evaluation period. The result all showed that capital market has a positive and significant impact on industrial output in Nigeria. The study therefore recommended that the government should implement appropriate reform policies aimed at ensuring efficiency In the workings of the stock market in Nigeria. Also there is need to reduce the cost of rising capital by firms on the stock market as high cost and other bureaucratic delays could limit the use of capital market as veritable source of raising funds for investment.  


Capital Market, Industrial Development

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