Capital Market Operations and Economic Growth in Nigeria (1985 -2011)
Oke. M.O.

Abstract
Interaction between capital market operations and economic growth has become a major focus of scholars in recent times due to the nature of funds obtained from the market. This is because economic growth is a long-term phenomenon and the capital market is also a long-term fund market. It therefore becomes necessary to study the nexus between the two as it affects the Nigerian economy. In this study, theGross domestic Product is regressed on the Capital market variables (Market capitalization, Number of Dealings and All share indexes) to check the long run effect of capital market activities on the growth of the economy. The study records a positive relationship between capital market operations and economic performance in the short-run with all the variables showing positive relationships with the Gross domestic product. The long run relationship tested by Johansen cointegration test also reveals a long term relationship between the explained and explanatory variables. However, market capitalization and number of dealing show a negative impact on the economic growth while the all share index shows a positive impact on the economic growth.. The study concludes the deviation in the long –run is due to sharp practices in the Nigerian capital market and recommends a total overhauling coupled with strict regulation as the possible solutions.

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