Analysis shows a significant negative effect of stock market volatility on GDP in Nigeria, indicating market fluctuations influence economic stability.
Key Points
Stock market volatility negatively impacts present GDP in the first lagged period, with effects fading over time.
In the first lagged period, the negative effect is significant at 1%, becoming less impactful with each successive lag.
The analysis reveals that oil price and exchange rate have no short-run significant effects on economic growth throughout lagged periods.
All variables are integrated of order one, but the test for long-run relationship among these is inconclusive, requiring further examination.