Financial Deepening and Economic Growth in Nigeria: Evidence from 1982 – 2019
Journal Title: International Journal of Innovation in Engineering (IJIE) - Year 2022, Vol 2, Issue 3
Abstract
This paper examines the impact of financial deepening on economic growth in Nigeria from 1982 – 2019. The objective of the study is to look at the impact of credit to private sector, money supply and gross domestic savings on the economic growth in Nigeria. Secondary data were collected based on the model used in the research work and unit root test was conducted on the data to test their stationary, after which we perform co-integration test to analyze the long run relationship among the variables. The result obtained from our empirical analysis shows that all financial deepening variables possesses a significant impact on the economic growth in Nigeria, that is, money supply, credit to private sector and gross domestic savings financial deepening proxies has significant and positive effect on economic growth. The study therefore recommends that government and the monetary authorities should make policies which would help to boost the saving culture of the people. This could be done by increasing the deposit rate which would lure the people to deposit their money in banks thereby increasing the supply of loanable funds. This would lead to a fall in interest rate and eventually rise in investment.
Authors and Affiliations
Stanley Osinachi Okafor, Ude Chinonye Lilian
Keywords
Related Articles
- EP ID EP711496
- DOI -
- Views 82
- Downloads 0
Investigating Iran Housing Market Cycles and Possible Scenarios in Short-Term and Midterm Horizon Using the System Dynamics
Housing is one of the important sectors of any economy. Given the lack of risk of the value of assets decline and the possibility of great numbers investment, investment in housing is attractive for the majority of Irani...
Dynamic DEA based on DMAIC model to evaluate passengersâ transportation in road transportation organization
In Iran, more than 94% of transportation is road transportation. The goal of this article is to assess and to rate road transportation companies of 31 country provinces and to determine the effect of integrating six sigm...
Approach to Implementing Health and Environmental Safety System in Construction Projects Using Fuzzy Logic
The present study's objective is the implementation of the general Health and Safety Executive(HSE) Plan in civil projects; at first, it is required to formulate the Work Breakdown Structure(WBS) in the relevant project...
Absorption in the wavemaker by Artificial neural networks (ANNs)
Wave-making theories are becoming available, but their applicability is limited to specific ranges of waves and wavemaker types. Machine learning can also be used to discover nonlinear functional relationships. As a resu...
Managing portfolioâs risk for improving quality in a project oriented manufacture
Iran is a developing country and there are many different infrastructure projects in hand. Some of the manufacturers that produce equipment for infrastructure projects as for oil, gas and energy projects should manage th...