An Analysis of the Effects of Insecurity on Capital Market and Economic Growth of Nigeria

Paul Aondona Angahar () and Luper Iorpev ()
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Paul Aondona Angahar: Benue State University
Luper Iorpev: Benue State University

International Journal of Academic Research in Accounting, Finance and Management Sciences, 2012, vol. 2, issue 3, 207-216

Abstract: This study adopts an ex-post facto research design to empirically examine the effect of insecurity on capital market performance and economic growth on Nigeria. Using data on peace index (PINDEX) and Peace Score (PSCORE) as proxy for insecurity, market capitalization as proxy for capital market performance and gross domestic product (GDP) as proxy for economic growth and total of listed equity and government stock as control variable collected from the global peace index (GPI), central bank of Nigeria (CBN) annual report, Securities and exchange (SEC) annual report and Nigerian Stock Exchange (NSE) annual report for a period of five years from 2007 to 2011. The multiple regression results indicate that there is a negative relationship between capital market performance, economic growth, and insecurity. Peace index is statistically significant to capital market performance while peace Score is not. However, peace score is statistically significant to economic growth while peace index is not statistically significant. The study recommends that government at all level should not rest until peace is restore in the country so as to enable the capital market contribute positively to economic growth, at the same time help in the attainment of vision 2020.

Keywords: Insecurity; capital market performance; Economic growth; and peace index of Nigeria (search for similar items in EconPapers)
JEL-codes: D90 D99 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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