FINANCIAL SECTOR DEVELOPMENT AND POVERTY REDUCTION IN NIGERIA: A VECTOR AUTOREGRESSION ANALYSIS (1980-2010)
Journal Title: Asian Economic and Financial Review - Year 2014, Vol 4, Issue 8
Abstract
This study examines the nexus between financial sector development and poverty reduction in Nigeria using Vector autoregressive (VAR) model. The choice of the study has been motivated by the alleged failure of the financial sector development in bringing about a reduction in the worsening trend in poverty incidence in Nigeria. The evidences from both the VAR and impulse response show that the indirect effect of economic growth exerts the strongest influence on poverty reduction in the short run but could be detrimental to the poor in the long run due to the adverse effect of income inequality. Furthermore, the relationship between poverty and the financial deepening proxied by broad money supply (M2) is negative and significant. Hence, the McKinnon conduit effect is the likely main transmission channel through which the poor benefit from the financial sector development in the long run. The study, however, concludes that credits to private sector, contrary to the general belief, have failed to cause a reduction in the incidence of poverty in Nigeria.
Authors and Affiliations
Risikat Oladoyin S. Dauda| Department of Economics University of Lagos, Akoka, Lagos, Kayode O. Makinde| Department of Economics University of Lagos, Akoka, Lagos
EMPLOYEE BRANDING MODEL BASED ON INDIVIDUAL AND ORGANIZATIONAL VALUES IN THE IRANIAN BANKING INDUSTRY
In the competitive world of today, every company knows that their main asset is human resources, since employees have a crucial role in building strong a brand. But researches show that more managers do not pay attention...
THE EFFECT OF NHIA DEBT ON ACCOUNTS PAYABLES MANAGEMENT IN PUBLIC HOSPITALS
NHIS has become a key means of ensuring accessibility to improved health care delivery in many countries. Indebtedness on the scheme to the public hospitals are high on the accounts receivable structure and its payments...
ON THE DETERMINANTS OF DERIVATIVE HEDGING BY INSURANCE COMPANIES: EVIDENCE FROM TAIWAN
There has been considerable growth in the derivatives holdings of Taiwanese insurance companies in recent years and this study examines the determinants of derivative use for both life and non-life companies. The determi...
FINANCIAL REPORTS QUALITY AND CORPORATE SOCIAL RESPONSIBILITY
This study explores the correlation between CSR and the quality of financial reports according to Stewardship Theory for 100 Best Corporate Citizens. The empirical results of the overall samples indicated that by practic...
INSTITUTIONS AND ECONOMIC GROWTH
The objective of this paper is to study the effect of institutional factors on economic growth of a set of 37 developed and developing countries for six successive periods of five years, from 1975 until 2000, using a sta...