Financial Development: A Fillip or Impediment to Nigeria’s Economic Growth
AbstractT Over the years, substantial theoretical and empirical studies have been conducted on the financial development-economic growth nexus. While a strand of the literature has found a positive linkage between this critical nexus, the other suggests otherwise. This study contributes to the debate by examining the finance-growth nexus for Nigeria using the bounds testing approach to cointegration within an ARDL framework proposed by Pesaran et al. (2001) and the augmented Granger causality test developed by Toda and Yamamoto (1995).Empirical evidence reveals that financial development significantly affects economic growth in the short and long run. The major implication for our study therefore is that financial regulatory institutions need to be strengthened to better maximize the gains from financial development especially its role towards real sector development and job creation for the growing population.
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Bibliographic InfoArticle provided by Econjournals in its journal International Journal of Economics and Financial Issues.
Volume (Year): 3 (2013)
Issue (Month): 2 ()
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Web page: http://www.econjournals.com
Financial Development; Economic Growth; Co-integration; Causality;
Find related papers by JEL classification:
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mouawiya Al-Awad & Nasri Harb, 2005.
"Financial development and economic growth in the Middle East,"
Applied Financial Economics,
Taylor & Francis Journals, vol. 15(15), pages 1041-1051.
- Harb, Nasri & Al-Awad, Mouawiya, 2005. "Financial Development and Economic Growth in the Middle East," MPRA Paper 13605, University Library of Munich, Germany.
- Suleiman Abu-Bader & Aamer S. Abu-Qarn, 2008. "Financial Development and Economic Growth: Empirical Evidence from Six MENA Countries," Review of Development Economics, Wiley Blackwell, vol. 12(4), pages 803-817, November.
- Selim Yildirim & Bilge Kagan Özdemir & Burhan Dogan, 2013. "Financial Development and Economic Growth Nexus in Emerging European Economies: New Evidence from Asymmetric Causality," International Journal of Economics and Financial Issues, Econjournals, vol. 3(3), pages 710-722.
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