Does Monetary Policy Determine Stock Market Development in Nigeria?

Samson A. Aladejare (), Irinyang J. Danjuma () and Ishaku R. Nyiputen ()
Additional contact information
Samson A. Aladejare: Federal University Wukari
Irinyang J. Danjuma: Federal University Wukari
Ishaku R. Nyiputen: Federal University Wukari

Acta Universitatis Danubius. OEconomica, 2018, issue 14(6), 296-310

Abstract: The aim of this study is to assess if monetary policy variables exert any sufficient effect on stock market development in Nigeria, for the time frame 1986-2015. By adopting the Johansen cointegration and error correction method (ECM) of analysis; it was found that long-term association prevails amongst monetary policy variables, and stock market development variables used in the study for Nigeria. However, going by the short-run result, this study submits that monetary policy has not significantly impacted on stock market development. This is because key monetary variables such as lending rate, deposit rate, and Treasury bills issued, do not show any sufficient effect on stock market development; either in the current or previous periods. Thus, implying that monetary policy in Nigeria should be geared towards repositioning the activities of the stock market in Nigeria, to bring about the desired growth and development in the economy.

Keywords: Monetary Policy; Stock Market; Development; Error Correction Model (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
http://journals.univ-danubius.ro/index.php/oeconomica/article/view/4984/4677 (application/pdf)

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:dug:actaec:y:2018:i:6:p:296-310

Access Statistics for this article

More articles in Acta Universitatis Danubius. OEconomica from Danubius University of Galati Contact information at EDIRC.
Bibliographic data for series maintained by Daniela Robu ().