Share Prices Volatility and Economic Growth in Nigeria (1980 – 2018) | Asian Journal of Economics, F

For the period 1980 to 2018, this research study looked into the impact of share price volatility on Nigerian economic development. The study used secondary data from the Nigeria Stock Exchange's share price list and the CBN's statistics bulletin, both of which are available on the CBN's website. The study's data included stock market values in five NSE sectors as well as the growth rate of the gross domestic product at constant basic prices. Eviews 10.0 was used to conduct the study, which used the Pooled Mean Group (PMG) of the panel Autoregressive Distributed Lag Model (ARDL). The study's findings revealed that both share price and share price volatility had good long-term trends. This means that their shocks had a beneficial impact on the pace of GDP growth. The short-run Error Correction Term (ECT) was statistically significant (PV0.05) with a coefficient of -0.512. The negative sign signified that the prior error will be corrected in the following term, and the figure (-0.512) meant that the speed of adjustment from the previous period to the long-run equilibrium is 51.2 percent. As a result, the model can reach long-run equilibrium in 51.2 percent of the time. At the 5% level of significance, share price volatility was negatively signed and statistically significant (t-cal = -1.984, PV = 0.044). This suggests that volatility shocks slowed gross domestic product growth in the near run. If the share price shock continues, the empirical findings in this study suggest a gloomy and unpredictable future for Nigerian economic growth. As a result, policymakers must focus on policies that develop and reinforce the economic structure in order to achieve long-term economic growth. As a result, the report suggests that efforts be made to develop and strengthen fiscal institutions in order to better share revenue management while also fostering responsibility and fiscal discipline in the economy.

Please see the link :- https://globalpresshub.com/index.php/AJEFM/article/view/1461