Volume 4, Issue 2, July 2014, Pages 110–120
Obinna Darlington Madukwe1 and Nkiru Stella Obi-Nweke2
1 MSc Student, Department of Insurance Enugu State University of Science and Technology (Esut), Enugu, Nigeria
2 MSc Student, Department of Insurance Enugu State University of Science and Technology (Esut), Enugu, Nigeria
Original language: English
Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
This study examined the significance relationship that exists between insurance investment and the Nigeria capital market, and the significance relationship that exists between total insurance business and economic growth of Nigeria for the period 2000-2011. The Pearson's Product Movement Correlation Coefficient was used to test the hypotheses to determine the extent of correlation, while the t-test was used to find out the significance of the relationship that exists between the variables. The study discovered that there was a significant relationship between Nigeria Insurance market investment and capital market, and there was also a significant relationship between Insurance business and economic growth. The study concluded that Insurance business is a business that have allowed different risk to be managed more efficiently, boosting financial stability, mobilization of domestic saving and accumulation of new capital that enhance the performance of the Nigeria Capital market and Economic Growth. The researchers therefore recommended that National insurance commission (NAICOM) should make policy that will enhance effective growth and development of insurance business in Nigeria and ensures that cooperate organizations and individual embraces the compulsory insurance business in Nigeria.
Author Keywords: Capital Market, Insurance, Investment, Economic Growth.
Obinna Darlington Madukwe1 and Nkiru Stella Obi-Nweke2
1 MSc Student, Department of Insurance Enugu State University of Science and Technology (Esut), Enugu, Nigeria
2 MSc Student, Department of Insurance Enugu State University of Science and Technology (Esut), Enugu, Nigeria
Original language: English
Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
This study examined the significance relationship that exists between insurance investment and the Nigeria capital market, and the significance relationship that exists between total insurance business and economic growth of Nigeria for the period 2000-2011. The Pearson's Product Movement Correlation Coefficient was used to test the hypotheses to determine the extent of correlation, while the t-test was used to find out the significance of the relationship that exists between the variables. The study discovered that there was a significant relationship between Nigeria Insurance market investment and capital market, and there was also a significant relationship between Insurance business and economic growth. The study concluded that Insurance business is a business that have allowed different risk to be managed more efficiently, boosting financial stability, mobilization of domestic saving and accumulation of new capital that enhance the performance of the Nigeria Capital market and Economic Growth. The researchers therefore recommended that National insurance commission (NAICOM) should make policy that will enhance effective growth and development of insurance business in Nigeria and ensures that cooperate organizations and individual embraces the compulsory insurance business in Nigeria.
Author Keywords: Capital Market, Insurance, Investment, Economic Growth.
How to Cite this Article
Obinna Darlington Madukwe and Nkiru Stella Obi-Nweke, “THE EMPIRICAL EVIDENCE OF NIGERIA INSURANCE BUSINESS, CAPITAL MARKET AND ECONOMIC GROWTH,” International Journal of Innovation and Scientific Research, vol. 4, no. 2, pp. 110–120, July 2014.
