Capital Market, Selected Macroeconomic Variables and Nigeria Economic Growth – A Quantile Regression Approach

Kelechi Promise Uzoma, Ajie Hycient Amakiri, Okorontah Chikeziem Fortunatus and Okechukwu Solomon
Additional contact information
Kelechi Promise Uzoma: Department of Economics, Rhema University Nigeria, Aba
Ajie Hycient Amakiri: Department of Economics, Federal University Wukari, Taraba
Okorontah Chikeziem Fortunatus: Department of Economics, Rhema University Nigeria, Aba
Okechukwu Solomon: Department of Physical Science, Rhema University Nigeria, Aba

International Journal of Research and Scientific Innovation, 2025, vol. 12, issue 6, 503-519

Abstract: In many economies, the capital market and macroeconomic variables play vital roles as drivers of economic growth and development. Capital market remains an effective channel of financial intermediation and a stable macroeconomic environment is a promoter of sustainable economic growth. The study therefore assessed empirically how the capital market and selected macroeconomic variables affects Nigeria’s economic growth using the quantile regression approach. Specifically, capital market were proxied by market capitalization (MCP), all share index (ASI) and number of shares traded (NOS) while selected macroeconomic variables are inflation rate (INF), exchange rate (EXC), Fiscal deficit (FD), government debt (GD). Time-series quarterly data covering 1985–2022 were obtained for the study from CBN statistical bulletin. Estimation methods used in the study’s analysis include Philip-Peron unit root test, descriptive statistics, co-integration analysis and Quantile regression approach. Findings from the study showed that MCP positively impacts economic growth in the long and short run. The ASI affects economic growth positively and insignificantly in the long and short runs, NOS positively impacts economic growth in the long and short run, INF exerts a negative effect on the economic growth of Nigeria. FD positively impacts economic growth but not significant. GD positively impacts economic growth in the long. Hence, the study recommends that the government should as a matter of urgency reform the capital market for optimal productivity of the selected capital market proxies. Secondly, government should ensure stability in macroeconomic variables through promoting macroeconomic policies and reform to achieve expected stability. Thirdly, government should diversify the economy to enable multiple sources of revenue as this will improve public expenditure that will yield growth and development.

Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.rsisinternational.org/journals/ijrsi/d ... -issue-6/503-519.pdf (application/pdf)
https://rsisinternational.org/journals/ijrsi/artic ... regression-approach/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bjc:journl:v:12:y:2025:i:6:p:503-519

Access Statistics for this article

International Journal of Research and Scientific Innovation is currently edited by Dr. Renu Malsaria

More articles in International Journal of Research and Scientific Innovation from International Journal of Research and Scientific Innovation (IJRSI)
Bibliographic data for series maintained by Dr. Renu Malsaria ().