Economic Growth and Financial Deepening – A Case Study of Nigeria
Journal Title: Journal of Economics, Finance and Management Studies - Year 2022, Vol 5, Issue 02
Abstract
The study examined Economic Growth and Financial Deepening – A Case Study of Nigeria. The study employed the Variance Inflation Factor (VIF) to test the presence of multicollinearity in the model, Augmented Dicky Fuller (ADF) unit root test to check the stationarity of the variables, the Error Correction Mechanism (ECM) was used to estimate the model established, and the Pairwise Granger Causality test to check the existence of causality among the dependent and independent variables. The result of the study of cointegration and equilibrium test of Economic Growth and Financial Deepening shows generally, a long run cointegration between economic growth and financial deepening. However, further study of the relationship shows that money supply shows a significant relationship with economic growth, while credit to private sector shows insignificant relationship with economic growth. Furthermore, there is no significant causal relationship between credit to private sector and gross domestic product, while there is an existence of bi-directional causality between money supply and gross domestic product. The implication of this is that money supply as it can cause economic growth and vice versa, while credit to private sector does not have any impact on economic growth.
Authors and Affiliations
Dr. Ogbonna Udochukwu Godfrey
Keywords
Related Articles
- EP ID EP706905
- DOI 10.47191/jefms/v5-i2-03
- Views 142
- Downloads 0
Analysis of the Sukuk Market Development in the Countries of The World
Islamic securities sukuk, introduced as a new instrument of the global financial system in the 21st century, have grown rapidly in recent years. Interest in it is growing, as it showed a growth trend even during the glob...
Factors That Influence the Amount of Working Time of Workers in Central Lombok Regency
This research aims to evaluate the factors that influence the working time of workers in Central Lombok district, West Nusa Tenggara, Indonesia. The data used in this research is secondary data obtained from the Central...
The Contribution Of The 2013 Curriculum And The 2023 Curriculum In Improving The Quality Of Education Elementary Schools In Tangerang City In Banten Province
This study aims to determine the contribution of the 2013 curriculum and the 2023 curriculum in improving the quality of elementary school education in Tangerang City. The population in this study were teachers from 7 el...
Determinable Factors Affecting Commercial Banks Deposit: The Case of Nigeria (2000-2019)
This study examined the determinable factors affecting commercial banks deposits in Nigeria for the period of 2000 to 2019 using panel data of listed banks. The study adopted secondary data obtained from the listed Depo...
Testing of Herding and Capital Structure Decisions on the Indonesia Stock Exchange: An Observation of Infrastructure & Property Firms
The purpose of this study is to examine the phenomena of herding behavior and capital structure decisions at IDX by taking samples of firms in the infrastructure and property industry sectors in 2018-2021. The basis for...