Research Article

Analysis and responses of Stock and Capital market on Nigerian Economic growth: Structural Vector Autoregressive (SVAR) model

Ali Salisu1*, Wali Sallau Abba2, Mu’azu Yunusa Riruwai3
1 Department of Economics, Faculty of Economics and Management Sciences, Bayero University,
2 Department of Finance, Bayero University Kano
3 Department of Finance, Faculty of Economics and Management Sciences, Bayero University Kano, Kano State, Nigeria.
* Corresponding author: alisalisubeto@gmail.com
Published: Jun, 2025
DOI: 10.67894/bjf.2025.dzzfp7m8
Pages: 152-165
Views: 12
Downloads: 4

Abstract

The stock market development is an important part of the economy of any country. It plays a crucial role in the growth of the industry as well as commerce that ultimately affects the economy of a particular nation to a great extent. The study examines the responses of Stock and Capital market on Nigerian Economic growth using quartly data from 2000Q1 to 2021Q4. The ZivotAndrew unit root test indicates that real gross domestic product and all share index are integrated of order one while market capitalization, stock value traded and private investment are integrated of order zero. The study employed Structural VAR model, the results from the impulse response functions revealed that, market capitalization, all share index and stock value traded transmit positive shocks to real growth domestic product in Nigeria while Private investment transmits negative shocks to real growth domestic product in Nigeria. Therefore, the study concludes that stock and capital market transmit positive shock to economic growth in Nigeria. The study recommends that the regulatory agencies in the capital market should be focused on enhancing the efficiency and transparency of the market in order to improve investors’ confidence. Government should be an efficient of macroeconomic variables in order to strengthen the performance of capital market so as to achieved economic growth. 

Keywords

Market Capitalization All share index Private investment Economic growth JEL Classification: G10 G12 E22 O40

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How to Cite

Salisu, A., Abba, W. S., & Riruwai, M. Y. (2025). Analysis and responses of Stock and Capital market on Nigerian Economic growth: Structural Vector Autoregressive (SVAR) model. Bayero University Journal of Finance, 2(1), 152-165. https://doi.org/10.67894/bjf.2025.dzzfp7m8

A. Salisu, W. S. Abba, and M. Y. Riruwai, "Analysis and responses of Stock and Capital market on Nigerian Economic growth: Structural Vector Autoregressive (SVAR) model," Bayero University Journal of Finance, vol. 2, no. 1, pp. 152-165, June 2025. doi: 10.67894/bjf.2025.dzzfp7m8

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