Globalization and the Development of the Nigerian Capital Market

The role of the capital market cannot be over emphasised in the development of most economy in the world and Nigeria is not an exception. The Nigerian capital market has gone through different stages alongside with challenges and hurdles that has slowed down its growth rate and its assimilation into the financial market of the world. This research work was to examine Globalization and the development of the Nigerian capital market from 1986 to 2020, which was before the wide spread of covid 19. Secondary data from CBN statistical bulletin was used. Augment Dickey Fuller ADF , Bound Test and Auto Regressive Distributed Lag were employed to evaluate the effect of foreign direct investment, total exports and total imports on Capital market development which was proxy by market capitalisation and it was discovered that foreign direct investment, non oil export and non oil imports has significant effect on market capitalization, therefore it was recommended that The government should consider the option of liberalizing the economy let there be labour market flexibility, lower tax rate for businesses, less restriction on both domestic and foreign capital to encourage competitiveness in the business environment, so that the full benefit of globalization would be reaped. Chima Kenneth Anachedo | Amalachukwu Chijindu Ananwude | Izuchukwu Andrew Nnoje | Jisike Jude Okonkwo "Globalization and the Development of the Nigerian Capital Market" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-2 , February 2022, URL: https://www.ijtsrd.com/papers/ijtsrd49234.pdf Paper URL: https://www.ijtsrd.com/management/business-economics/49234/globalization-and-the-development-of-the-nigerian-capital-market/chima-kenneth-anachedo