Financial Market as Channel to Financial Intermediation in the Growth of the Nigerian Economy
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Date
2022-12
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Lead City University
Abstract
The financial market is one wherein people and establishments change monetary securities. The aims and objectives of this study is to ascertain the performance of the
cash market and capital market in Nigeria; examine the effect of market capitalization as a financial intermediation channel on the real Gross Domestic Product (GDP) of
Nigeria’s economy; evaluate the money market’s effect as a financial intermediation channel on the real Gross Domestic Product (GDP) of Nigeria’s economy; and identify the nexus between money market, capital market as financial intermediation channels on real Gross Domestic Product (GDP) of Nigeria economy. The study adopted the ex-post facto research design. Data was collected through the secondary source from CBN Statistical Bulletin, the CBN Annual Report and statement for the relevant years (1990-2019), which was analyzed using the Ordinary Least Square (OLS) method with the help of E-views version 9. Findings found out that market capitalization is a significant financial intermediation channel on real Gross Domestic Product (GDP) of Nigeria economy. Descriptive statistics for the dependent and independent variables which are Certificate of Deposits (COD), Treasury Bill (TB), Treasury Certificate (TC) and Market Capitalization Rate (MCR), Gross Domestic Product, Interest rate (ITR) and Money Supply (M2) all have a positive mean value which ranges from 0.039667 to 4.167946with 30 observations It was recommended that the authorities have to each withinside the quick and long-run priotize regulations geared closer to increasing/growing cash markets operations in Nigeria to make the economic system greater stable.
Keywords: Financial Market, Treasury Bill, Certificate of Deposits, Financial Intermediation, Gross Domestic Product (GDP), market capitalization
Word Count: 245
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Keywords
Financial Market, Treasury Bill, Certificate of Deposits, Financial Intermediation, Gross Domestic Product (GDP), market capitalization
Citation
Kate Turabian