Dynamic Relationship Between External Financial Flows and Total Market Capitalization in The Nigerian Capital Market: VECM Approach

The study examines the extent to which external financial flows influence market capitalization of Nigerian capital for period spanning 1981-2020. employed VECM, regressors’ and ECT t-statistics causality approaches establish strong, short-run long-run relationships. unveiled that all such as FDI, FPI, remittance others used in this have positive impacts on total annual market, especially long-run. stock indices movement is respective change basic. suggested policy measures aimed at directing long run inflows should not be same those changing short patterns flow. concludes put place ensure directions both a suitable time rage.