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    Impact of stock market development on the economic growth in Nigeria (1990-2023)
    (İstanbul Gedik Üniversitesi, Lisansüstü Eğitim Enstitüsü, 2025) Ojeniyi, Jesupelumi Albert; Güvel, Enver Alper
    Financial globalization entails the marketization of the domestic banking industry and the capital account in order to integrate a nation's financial system into international financial networks. The world stock market is one of the most vital parts in the global economy, and it forms an avenue for capital in various opportunities for investment. Over the last couple of years, the sum of the market capitalization of world stock exchanges has achieved a level in excess of $100 trillion, which reflects the rising role taken by the equity markets in economic development and growth. Comparing the Nigerian stock exchange to counterparts in more developed economies, it has remained less developed than the NSE, which was founded in 1961. The general objective of this study will be to assess the effect that stock market development has on Nigeria's economic growth. Two testable hypothesis was carried out in the study. The study adopted the endogenous growth theory. A quantitative research design was used, focusing on the analysis of the effect of stock market development on the economic growth of Nigeria. The scope of the research encompasses a period of thirty years (1990-2023), a period selected to capture historical patterns, reforms, and structural changes in Nigeria's stock market. Various econometric techniques are being utilized for this time-series data analysis to ensure that the study is not only robust but also insightful with regards to how the stock market can affect economic growth. Unit root test, ganger causality, Johansen cointegration and vector autoregressive estimate was also carried out as inferential statistics with the use of SPSS software. The study found several significant results with respect to the relationship between stock market development and economic growth in Nigeria: The VAR results indicated that there was no significant causality between stock market size (MCAP) and economic growth (GDP. The study found a significant negative relationship between stock market liquidity (VLC) and economic growth (GDP), indicating that increased liquidity may lead to volatility and instability, rather than fostering long-term growth. Foreign Direct Investment (FDI) was found to have a positive, yet statistically insignificant, relationship with GDP. This finding suggests that while FDI can enhance market efficiency by bringing in capital and advanced financial practices, its effect on Nigeria's economic growth is limited by structural issues such as poor infrastructure and political instability. Recommendations suggest that The Nigerian stock market should focus on improving market transparency and reducing information asymmetry. Policymakers should implement measures to reduce excessive liquidity-driven volatility in the market.