Achieving Vision 20: 2020: The Role of the Nigerian Capital Market

Abstract

This study examined the role of the Nigerian Capital Market in achieving the vision 20: 2020 in Nigeria. However, the main aim of vision 20:2020 is to improve the standard of living of the average Nigerian. Applying co-integration and error correction modeling to stock market performance and per capital income time series data, this study has helped in highlighting the specific roles of major indicators of the capital market, which are relevant in testing the stock market-economic growth nexus. The findings indicate the separate roles played by the primary capital market and the secondary capital market in the growth of the Nigerian economy are capable of achieving vision 20:2020. By and large, the evidence from this study revealed that while activities in the secondary capital market tend to grow the Nigerian economy through its wealth effect that of the primary market ironically did not