This study investigated the relationship between capital inflows and stock market development in Nigeria for the period spanning 1986 to 2013. Capital inflow was proxied by foreign direct investment and foreign portfolio investment while stock market development was proxied by market capitalization, turnover ratio and value traded ratio. The study employed error correction modelling techniques. From the regression estimate, it was shown that only market capitalization and value traded ratio had significant influence on foreign portfolio investment while none of the measures of stock market development significantly influenced foreign direct investment in the long run in Nigeria. The short run estimate showed that among the three measures of stock market development only market capitalization influenced both foreign direct investment and foreign portfolio investment while value traded ratio only had significant influenced on foreign direct investment in the short run. The study concluded that stock market development had not significantly promoted the inflows of foreign capital inflow in Nigeria.
| Published in | Journal of Investment and Management (Volume 4, Issue 6) |
| DOI | 10.11648/j.jim.20150406.21 |
| Page(s) | 369-376 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2015. Published by Science Publishing Group |
Market Capitalization, Turnover Ratio, Value Traded Ratio, Foreign Direct Investment, Foreign Portfolio Investment, ECM, Nigeria
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APA Style
Nwosa Philip Ifeakachukwu. (2015). Financial Market Development and Capital Inflows in Nigeria: The Role of Stock Market Development. Journal of Investment and Management, 4(6), 369-376. https://doi.org/10.11648/j.jim.20150406.21
ACS Style
Nwosa Philip Ifeakachukwu. Financial Market Development and Capital Inflows in Nigeria: The Role of Stock Market Development. J. Invest. Manag. 2015, 4(6), 369-376. doi: 10.11648/j.jim.20150406.21
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Download@article{10.11648/j.jim.20150406.21,
author = {Nwosa Philip Ifeakachukwu},
title = {Financial Market Development and Capital Inflows in Nigeria: The Role of Stock Market Development},
journal = {Journal of Investment and Management},
volume = {4},
number = {6},
pages = {369-376},
doi = {10.11648/j.jim.20150406.21},
url = {https://doi.org/10.11648/j.jim.20150406.21},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20150406.21},
abstract = {This study investigated the relationship between capital inflows and stock market development in Nigeria for the period spanning 1986 to 2013. Capital inflow was proxied by foreign direct investment and foreign portfolio investment while stock market development was proxied by market capitalization, turnover ratio and value traded ratio. The study employed error correction modelling techniques. From the regression estimate, it was shown that only market capitalization and value traded ratio had significant influence on foreign portfolio investment while none of the measures of stock market development significantly influenced foreign direct investment in the long run in Nigeria. The short run estimate showed that among the three measures of stock market development only market capitalization influenced both foreign direct investment and foreign portfolio investment while value traded ratio only had significant influenced on foreign direct investment in the short run. The study concluded that stock market development had not significantly promoted the inflows of foreign capital inflow in Nigeria.},
year = {2015}
}
TY - JOUR T1 - Financial Market Development and Capital Inflows in Nigeria: The Role of Stock Market Development AU - Nwosa Philip Ifeakachukwu Y1 - 2015/10/16 PY - 2015 N1 - https://doi.org/10.11648/j.jim.20150406.21 DO - 10.11648/j.jim.20150406.21 T2 - Journal of Investment and Management JF - Journal of Investment and Management JO - Journal of Investment and Management SP - 369 EP - 376 PB - Science Publishing Group SN - 2328-7721 UR - https://doi.org/10.11648/j.jim.20150406.21 AB - This study investigated the relationship between capital inflows and stock market development in Nigeria for the period spanning 1986 to 2013. Capital inflow was proxied by foreign direct investment and foreign portfolio investment while stock market development was proxied by market capitalization, turnover ratio and value traded ratio. The study employed error correction modelling techniques. From the regression estimate, it was shown that only market capitalization and value traded ratio had significant influence on foreign portfolio investment while none of the measures of stock market development significantly influenced foreign direct investment in the long run in Nigeria. The short run estimate showed that among the three measures of stock market development only market capitalization influenced both foreign direct investment and foreign portfolio investment while value traded ratio only had significant influenced on foreign direct investment in the short run. The study concluded that stock market development had not significantly promoted the inflows of foreign capital inflow in Nigeria. VL - 4 IS - 6 ER -
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