AN EMPIRICAL INVESTIGATION INTO THE RELATIONSHIP BETWEEN FINANCIAL SECTOR DEVELOPMENT AND UNEMPLOYMENT IN NIGERIA
Journal Title: Asian Economic and Financial Review - Year 2013, Vol 3, Issue 10
Abstract
Financial sector development has been identified by financial economists as a veritable way of empowering the poor thereby paving the way for enabling them to become employed and possibly serve as economic agents of change. This study empirically investigates the relationship between financial sector development and unemployment in Nigeria. A time series data was generated from 1980 to 2011 period. Auto Regressive Distributed Lag (ARDL) Bound Testing technique for cointegration was applied to estimate the long run relationship. The study found that there has been persistent unemployment in Nigeria, while formal credit allocation in rural areas has both short run and long run effect of reducing unemployment. Also found in this study is that expansionary monetary measures did not fuel inflation significantly. The study therefore recommends that monetary authority should strengthen and deepen financial services industry, particularly, Deposit Money Banks, to provide necessary financial support to the teeming unemployed youth in the country.
Authors and Affiliations
Haruna Mohammed Aliero| Department of Economics, Faculty of Social Sciences, Usmanu Danfodiyo University Sokoto, Nigeria, Saifullahi Sani Ibrahim| Department of Economics & Development Studies, Faculty of Arts, Management & Social Sciences, Federal University Dutsin-ma, Nigeria, Mukhtar Shuaibu| Department of Economics, Faculty of Social Sciences, Usmanu Danfodiyo University Sokoto, Nigeria
THE VALIDITY OF OKUN’S LAW IN NIGERIA: A DIFFERENCE MODEL APPROACH
This paper, empirically, tests the validity of Okun’s law in Nigerian economy from 1980-2012. The two versions of the difference model approach of the Okun’s law are used even though one of them is frequently used in the...
GOING PUBLIC AND UNDERPRICING AS BRAND VALUE ENHANCING TOOLS
After the year 2000, a new trend in corporate finance-related research has been investigating the relationship between Initial public offerings ?IPOs? variables from one side and brand value on the other in order to come...
ECONOMIC SANCTIONS, SPECULATIVE ATTACKS AND CURRENCY CRISIS
In this study, the effects of economic sanctions and speculative attacks on creating currency crisis have been investigated in Iranian economy during recent years. Economic sanctions can lead to currency crisis through t...
THE DETERMINANTS OF THE FINANCING DECISIONS OF LISTED AND NON-LISTED FIRMS IN GHANA
The study examines the financing decisions of 19 listed companies in comparison with 16 non-listed companies in Ghana. The study tests some hypotheses related to capital structure determinants and debt policy decisions....
CAUSALITY BETWEEN OIL CONSUMPTION AND ECONOMIC GROWTH IN OPEC COUNTRIES: A PANEL COINTEGRATION APPROACH
This paper examined the relationship between oil consumption and economic growth in OPEC countries within a panel cointegration and panel based error correction model by using data from 1980 – 2011. In this paper we use...