Abstract

The study is to analyze the relationship between Nigerian capital markets in relation to her economic growth using cointegration approach. The capital market economic indicators (variables) used in this study consist of the market capitalization (MCAP); the value of transactions (VOT), total new issues values (TNI), and the economic growth indicated as gross domestic product (GDP) all in millions of naira. Augmented Dickey Fuller (ADF) Specification for Unit Root was used to examine the existence of stochastic non-stationarity in the series after which Johansen cointegration test applied to verify the long run equilibrium relationship that exists between the Nigerian capital market and the economic growth. The result of the analysis shows the trace statistic result of the none, At most 1 and At most 2 are significant to the value of the critical value