Stock market is an essential part of a nation’s economy and requires adequate evaluation of all factors that militate against its performance. This study investigates the role of macroeconomic variables in determining the stock market performance in Nigeria using annual time series data covering a period from 2009 to 2018. These data have been sourced from the World Bank Development Indicators, International Monetary Fund and CBN Statistical Bulletin. The results from the regression analysis indicate that exchange rate and interest rate do not have significant impact on share price index while inflation rate exerts a significant negative influence on share price index. On the contrary and in line with the concept of GDP and stock market performance, GDP significantly and positively impacts on share price index. The study among others suggests that the growth of the economy should be maintained to keep stock market flourishing while macroeconomic variables such as inflation, interest rate and exchange rate should be appropriately regulated by the relevant authorities to curtail all negative influences on stock market performance.
This study set out to investigate the reality or otherwise of the pollution haven hypothesis in Nigeria using data from 1970 to 2017 and using the autoregressive distributed lag (ARDL) models both in the short and long run. The study used FDI inflows as measure of economic activity and carbon dioxide emission as a measure of regulatory stringency. The study finds the previous FDI inflows as a significant determinant of current FDI both in the short and long run. This implies that the more FDI an economy attracts, the more potentials it has to further attract more FDI. Population, a measure of demand condition of the host economy is positively and significantly related to FDI inflows both in the short run and in the long run. Trade openness has a positively significant impact on FDI inflows in the long run, meaning that globalization encourages FDI inflows. A year lag of the FDI has a positively significant impact on FDI inflows in the long run. This suggest that pollution haven hypothesis which states that industries with polluting technologies tend to relocate to countries or areas (pollution havens) with lax or less stringent environmental regulations is a reality for Nigeria. The implication of this is that government of Nigeria must weigh the beneficial impact of FDI inflows against the pollution impact of ‘dirty’ FDI before deciding or setting its environmental policy.
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