Open Journal of Statistics, 2018, 8, 584-602
http://www.scirp.org/journal/ojs
ISSN Online: 2161-7198
ISSN Print: 2161-718X
An Empirical Assessment of the Impact of
Nigerian all Share Index, Market Capitalization,
and Number of Equities on Gross Domestic
Product
Obubu Maxwell, Obiora-Ilouno Happiness, Uzuke Chinwendu Alice, Ikediuwa Udoka Chinedu
Department of Statistics, Nnamdi Azikiwe University, Awka, Nigeria
Abstract
A stock exchange is an exchange where stock brokers and traders can buy and
sell shares of stock, bonds, and other securities. All listings are included in the
Nigerian Stock Exchange All Shares index. In terms of market capitalization,
the Nigerian Stock Exchange is the third largest stock exchange in Africa.
Objectives: The paper assesses the impact of Nigerian Stock Market (all share
index, market capitalization, and number of equities) on Gross domestic
product (Economic Growth). Materials and Methods: Regression analysis
and ordinary least square technique were employed. Result and Discussion:
The series was stationary at 1%, 5%, and 10% α level; the residuals were nor-
mally distributed but not serially correlated at 5% α level. All Share Index,
Market Capitalization and Total Number of listed Equities have a joint and
individual significant effect on Economic Growth (Gross Domestic Product)
with Total Number of listed Equities having a negative (opposite) linear rela-
tionship with the Gross Domestic Product. The Durbin-Watson statistics (R
2
= 0.9910 < DW = 1.3686) suggest that the model is not spurious and it is de-
void of positive and negative autocorrelation (DW = 1.3686 > d
l
= 1.07 and
DW = 1.5033 < 4 - d
u
= 2.17). Therefore, it can produce meaningful result
when used for forecasting a positive relationship between gross domestic
product, all share index and market capitalization with a 99.1% R-square val-
ue. Significant Positive connection between all share index, market capitaliza-
tion, the number of equities and gross domestic product suggests that gov-
ernment policies and bills aimed towards rapid development of the capital
market should be initiated.
Keywords
Nigerian Stock Market, Gross Domestic Product, Market Capitalization, All
How to cite this paper: Maxwell, O., Hap-
piness, O.-I., Alice, U.C. and Chinedu, I.U.
(2018) An Empirical Assessment of the
Impact of Nigerian all Share Index, Market
Capitalization, and Number of Equities on
Gross Domestic Product. Open Journal of
Statistics, 8, 584-602.
https://doi.org/10.4236/ojs.2018.83038
Received: October 26, 2017
Accepted: June 22, 2018
Published: June 25, 2018
Copyright © 2018 by authors and
Scientific Research Publishing Inc.
This work is licensed under the Creative
Commons Attribution International
License (CC BY 4.0).
http://creativecommons.org/licenses/by/4.0/
Open Access
DOI: 10.4236/ojs.2018.83038 Jun. 25, 2018 584 Open Journal of Statistics