Assessment of the Relationship between Financial Integration and Industrial Sector Growth: Evidence from Nigeria
Journal Title: Archives of Current Research International - Year 2017, Vol 10, Issue 2
Abstract
This study assessed the relationship between financial integration and industrial sector growth in Nigeria. One of the major goals of financial integration is to boost investments and engender increased productivity among nations. In this study, we examined how international financial integration has impacted on the Nigerian industrial sector using annualized data from 1981 to 2014. The study employed the vector autoregressive (VAR) estimation in analyzing a modified growth model. The Johansen co-integration test and the VAR-Granger causality test were also utilized. From the unit root test, no evidence of long-run relationship was found to exist between financial integration and industrial growth over the study period - both at the instances of the Trace statistic and the Max-Eigen test statistic. The study found that trade openness and foreign direct investment have positive but insignificant impact on the Nigerian industrial sector whereas financial market development exerted negative impact on industrial growth in Nigeria. No evidence of causal link was found between growth in industrial value added, openness and financial market development. However, we found evidence of unidirectional causality running from foreign direct investment to industrial value added. The study concludes that international financial integration has not exerted significant positive influence on the growth and development of the Nigerian industrial sector and therefore, recommends that policy actions aimed at promoting exports and building an import substitution economy be put in place.
Authors and Affiliations
Ezeaku, Hillary Chijindu, A. Anidiobu Gabriel, I. P. Okolie Paschal
Keywords
Related Articles
- EP ID EP320157
- DOI 10.9734/ACRI/2017/36944
- Views 89
- Downloads 0
Technical Challenges in Shifting from BS IV to BS-VI Automotive Emissions Norms by 2020 in India: A Review
Automotive vehicles emit several exhaust gases and pollutants. The largest part of these gases consists of nitrogen (N2), water vapor (H2O) and carbon dioxide (CO2) these are not toxic. Harmful gases i.e carbon monoxide...
Phytochemical Screening of the Ethanol and Aqueous Extracts of Dicliptera verticillata Leaves
Dicliptera verticillata is an underutilized medicinal plant that grows in Akwa Ibom State South-South Nigeria. Ethanol and aqueous extracts of the leaves are sometimes used for the treatment of malaria. The phytochemical...
Combining Ability and Heritability of Maize (Zea mays L.) Morphologic Traits under Water Stress and Non-stress at Flowering Stage
The main objective of the present investigation was to estimate combining ability, genetic variance components and heritability of 12 morphologic traits of maize under water stress (WS) and well watering (WW) at flowerin...
Impact of the Proximity of Septic Tanks on the Bacteriological Quality of Well Water from Private House-holds in Ado Ekiti, Nigeria
This study evaluated the effects of the proximity of septic tank on the bacteriological quality of domestic well water of some private house-holds in “Aba Erinfun”, Ado Ekiti, Ekiti State, Nigeria. Twenty (20) samples of...
Effects of Processing Triticum spp on Total Aflatoxins and Its Distribution into Wheat Products
Aflatoxins are carcinogenic. The presence of such mycotoxin in food and feed could pose health threat to both human and animals. Aims: The aim of this research were to study the distribution and the fate of total aflato...