Impact of Economic Recovery on Market Capitalization in Nigeria

Biradawa Kayadi, Opara Confidence Chinwe, Umoh Unyime Emmanuel
2021 Middle East Research Journal of Economics and Management  
The study examined the impact of economic recovery on market capitalization in Nigeria. The specific objectives of the study include: to examine the effect of Gross Domestic Product (GDP) growth rate on market capitalization, to determine the influence of Inflation rate on market capitalization and to assess the impact of Exchange rate on market capitalization. To achieve the objective of the study, ex-post facto research design was adopted. The researcher used secondary data in collating the
more » ... quired data. The data were collected from CBN statistical bulletin. In testing the hypotheses, multiple regression analysis was used. The findings revealed that GDP growth rate has positive impact on market capitalization while inflation rate and exchange rate have negative impact on market capitalization. The study recommends that Nigeria government should devise a means of increasing gross domestic product growth rate through effective utilization of their revenue allocation and expending. The study also recommends that during economic recovery, Nigeria government should ensure that their inflation rate is reduced. Inflation being the major economic factor that can be hampered by economic recession can reduce market capitalization in Nigeria.
doi:10.36348/merjem.2021.v01i01.001 fatcat:6jbkdnahebf55jjhzgodoqjxoe