Abstract:

The study aims at investigating the impact of capital market on economic growth in Nigeria. The research adopts a time-series research design depending comprehensively on secondary data with coverage from 1983 to 2013. The study employs regression analysis as data analysis method including unit root test using Augmented Dicker Fuller (ADF). The findings from this study suggest that three exhibit positive while one exhibit inverse relationship with economic growth. Also, two variables were statistically significant while the other two were statistically insignificant. We recommend that there should be an improvement in the negativity of All Share Index by encouraging extension of  long term funds  to investors in the capital market rather than short term funds as it will help to boost the economic growth as more funds would be invested in the economy. Also, there should be an increase in the availability and sufficiency of investment instruments such as options, derivatives, future and convertibles for investors as this will boost the value of transactions in the market.