Interest Rate, Inflation Rate and Exchange Rate Influence on the Nigerian Stock Market Index
AbstractThere is need to know what influence the Nigerian stock market. Index (SMI), proxy for stock prices. The index of all share prices (SMI), is a barometer for growth of the stock market and therefore that of the economy. Studies had been conducted on the subject but not specifically on these three isolated macro-economic variables which are quite intimidating or over- whelming and for reliability and effectiveness. Their dynamic effect on or relationship with the SMI is investigated, using co- integration on yearly data between 1975 and 2009. The finding is that some relationships exist among them, though not significant. It is therefore recommended that the authorities should manage these variables and enhance exports to improve growth because of the long- run negativity of the exchange rate.
The copyright of this journal is owned by the International Association of African Researchers and Reviewers.
AFRREV IJAH: An International Journal of Arts and Humanities by International Association of African Researchers and Reviewers is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.