GLOBALIZATION AND STOCK MARKET GROWTH IN NIGERIA

GLOBALIZATION AND STOCK MARKET GROWTH IN NIGERIA (ECONOMICS PROJECT TOPICS AND MATERIALS)

Abstract

This study examines the impact of globalization and Nigeria’s Stock Market Growth in Nigeria. It also determines whether the introduction of the automated trading system has any significant effect on the stock market operation and it also aim to investigate whether globalization of the stock market in Nigeria has attracted foreign direct investment. The population of study consists of one hundred questionnaires administered to the employees in the administration department of the Nigerian Stock Exchange. The method of analysis used in the course of this study was the chi-square method, which was used to test the hypotheses. Based on the tested hypotheses, it was found that globalization has a significant impact on the stock market operation in Nigeria. The study concludes that the Nigeria Stock Market has a brighter prospect given to the recent policy direction especially the abrogation of laws that hitherto hamper its effective and efficient functioning, the internationalization, the improvement in the infrastructural facilities in the market in line with what is obtainable in the developed market as well as the present democratic dispensation will work individually and jointly to ginger the prospect of the stock market. Finally, it was recommended thatgovernment should play a more positive role in order to foster Stock

CHAPTER ONE

INTRODUCTION

1.1   Background to the Study

Globalization refers simply to the universalization of concepts, movements, technology, market operations in the context of a compressed world. A process by which the world becomes a single place (Schotte, 2006; Monge, 2008). Furthermore, it is a process characterized by increase in communication velocity, technological sophistication, economic integration and ideological universalism.

Globalization is a fact of life because all are affected by it in terms of its benefits or limitations, positively or negatively. It is one of the tendons of our time eliciting fundamental changes in the policy structure, management and growth in directions of organizations and nations world-wide. In its broader terms, globalization refers to the fact that frontier have ceased to be the barrier of economic growth.

Globalization is driven by advancement in sophisticated telecommunication and technology, with the consequent reduction in distance between economic agents making it possible for domestic markets to emerge into a global system. In this context, globalization has created variety of financial and investment opportunities, which many developing countries like Nigeria have taken advantage of to secure susbstantial foreign (bank) debts during the early 70s. The place of integration of world economy has quickened considerably as a result of significant shift in the global economy. With the collapse of communism, the global integration, particularly in trade and capital flow has gained momentum. The world ideological partition which earlier prevented integration between the major blocks, has given way to more accommodating environment and opening up societies that were hitherto closed (Monge, 2008).

GLOBALIZATION AND STOCK MARKET GROWTH IN NIGERIA (ECONOMICS PROJECT TOPICS AND MATERIALS)