Asian Economic and Financial Review 3(1):75-98 75 FINANCIAL MARKET STRUCTURE AND ECONOMIC GROWTH: EVIDENCE FROM NIGERIA DATA Anne C Maduka Department of Economics, Anambra State University- Uli. Kevin O. Onwuka Department of Economics, Nnamdi Azikiwe University, Awka. ABSTRACT In this paper, we investigate both the long run and short run relationships between financial structure and economic growth using time series data. The presence of a unit root in the time series data was tested using Augmented Dickey – Fuller and Philips – Perron tests. The long run relationship among the variables is estimated using Johansen and Juselius (1990) maximum likelihood procedure. While the vector error correction model is used to estimate short run the dynamic coefficients. The main results reveal that financial market structure has a negative and significant effect on economic growth based on Nigeria data. This suggests a low level of development of the country’s financial sector. The paper therefore recommends that there is a need to put appropriate financial policies in place that will encourage the growth per capita GDP. Key Words: Financial market structure, Cointegration test, ECM, Economic Growth, Nigeria INTRODUCTION Since independence, the financial sector has been on the increase. Today, we have about 24 strong banks and well functional stock market. Other financial institutions like insurance companies, finance companies etc are growing. Also included are specialized banks such as industrial development banks, agricultural and rural development banks and mortgage banks. The financial sector has been liberalized in Nigeria. However, despite the growth record of banks and non-bank financial institutions in Nigeria, and financial liberalization policy, the Nigeria economic growth is sluggish. The per capita income is less than $4,000. Most of the industries are winding up and thus giving rise to unemployment. At this junction, it might be necessary for one to ask if the financial market in Nigeria is underdeveloped to support the investment needed to boost economic growth. Asian Economic and Financial Review journal homepage: http://aessweb.com/journal-detail.php?id=5002