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Equity Market Performance and Economic Growth in Nigeria: An Application of Vector Error Correction Model

Equity market has been seen as a vehicle for promoting economic growth by mobilizing long term funds for productive investment, but theoretical postulations differ over this role. The understanding of this role is of strong policy relevance in Nigeria. This paper therefore attempts to establish the existence of long-run relationship between economic growth and equity market performance with the view to improving policy formulation that will promote growth through capital market in Nigeria. Using data from Q1:1998 to Q4:2018, the Johansen and Juselius (1990) multivariate cointegration results e…

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