Dynamic Interactions of Nigerian Stock Market and Macroeconomic Variables

Abstract

This study investigated the Dynamic Interactions of Nigerian Stock Market and Macroeconomic Variables with annual data collected from the Central Bank of Nigeria, Nigerian Stock Exchange Fact Books and National Bureau of Statistics from 1985 to 2018. It was found that economic growth proxied by Growth Domestic product and Interest rate have positive and significant relationship with all share index within the period of study, while inflation exerts negative influence on All Share Index. It was also found that exchange rate has insignificant impact on All Share Index within the scope of the study. Consequently, the researchers are of the opinion among others that government and her regulatory bodies devise adequate measure to curtail inflation in Nigeria.

Keywords: Nigeria Stock Market, All Share Index, Macroeconomic Variables, ARDL.

DOI: 10.7176/RJFA/11-8-04

Publication date: April 30^th 2020