Is There A Link Between Financial Sector Development And Economic Growth In Nigeria?

Journal Title: International Journal of Financial Economics - Year 2013, Vol 1, Issue 4

Abstract

There is no consensus in the empirical literature on the causal links between financial sector development and economic growth. This paper investigates the long run and causal relationship between financial sector development and economic growth in Nigeria for the period 1981 and 2011 using time series data. Results from a multivariate VAR and vector error correction model support evidence of long run relationship between financial sector development and economic growth in Nigeria. Granger causality test results also confirm the cointegration results indicating there exist causality between financial sector development and economic growth in Nigeria. The nature of the causality however depends on the variable used to measure financial development. The results demand that government should implement appropriate regulatory and macroeconomic policies to consolidate on the gains of previous financial sector reforms.

Authors and Affiliations

Olabanji Olukayode Ewetan, Henry Okodua

Keywords

Related Articles

The Global financial Crisis: Is Islamic System a Potential Solution?

The world today is in need for a good and rational financial system aftermath the last tragic global crisis through applying Islamic financial system which discards the arrogance, injustice and greed of capitalist syste...

An Empirical Analysis between Banking Sector Development and Growth Rate of GDP in Bangladesh

The objective of this research is to investigate the impact of banking sector development on economic growth in Bangladesh over the year 1990-2011. In this research, we have used five different explanatory variables by...

An Explanatory Study of Women Entrepreneurs: The Key Success Factors to Start-up a Micro Business

The purpose of this paper is to examine the key success factors to start-up a micro business. This study has been limited for women entrepreneurs in micro business, who graduated from Entrepreneurship Short Courses (ES...

The Effect of Job Related Selected Factors of Job Satisfaction among Employees of Different Levels of Financial Institutions: A Study in Sylhet City, Bangladesh

Job satisfaction is the indicator of success and failure of any service providing organization as the satisfied employee can provide satisfaction to the customers that lead to the success of an organization. It may diff...

The Impact of the Consolidation of the Banking Sector on Nigeria Economy

This paper examines the impact of the Consolidation of the Banking Sector on Nigeria Economy specifically the 2005 CBN Consolidation of Banks which increased the minimum capital base from N2 billion to N25 billion. A w...

Download PDF file
  • EP ID EP27248
  • DOI -
  • Views 391
  • Downloads 11

How To Cite

Olabanji Olukayode Ewetan, Henry Okodua (2013). Is There A Link Between Financial Sector Development And Economic Growth In Nigeria?. International Journal of Financial Economics, 1(4), -. https://europub.co.uk/articles/-A-27248