This study examined the impact of capital market growth on Nigerian economy between 2000 and 2013. Data were collected from Security Exchange Commission reports, Nigerian Stock Exchange Review Reports, Central Bank of Nigeria Statistical Bulletin respectively and ordinary least square method of regression was used with aid of SPSS version 16 software packages to analyze the data. Gross Domestic Product (GDP) was used as measure for economic growth while the capital market development are represented with Market Capitalization (MCAP), Numbers of Deals, All-Share Index (ALSI) and Total Value of Transaction (TVT).The result of the study reveals a strong correlation between economic growth and the independent variables. This is clearly shown in the very high R, R2, and adjusted R2 of 0.951, 90.4% and 86.1% respectively. With the exception of All Share Index, Total Value of Transaction and Numbers of Deals do not have significant impact on economic growth of Nigeria within the period of study. On the whole, 90.4% variation in economic growth in Nigeria is explained by the model. The long run relationship showed that only market capitalization impact significantly on the GDP. In the same manner the short run error correction model still indicates that market capitalization impacts positively on the economy. The study therefore recommends the pursuit of policies that would improve the depth and breadth of the Nigerian capital market so as to engender a rapid development of the market that would result in the economic growth and development of the economy.
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