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Re-examining the link between financial structure and economic growth in Nigeria: An empirical investigation

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  • Gidigbi, Matthew

    (Economics Department, Modibbo Adama University of Technology, Yola, Nigeria.)

Abstract

This paper re-examined the link between financial structure and economic growth in Nigeria. It sets to identify the prevailing financial structure in Nigeria and the link between the financial structure and economic growth in the face of expansion in the financial organisation size and depths. The paper used annual data from the Central Bank of Nigeria and the World Bank Development Indicators, covering the period of 1981 to 2017. The study adopted a Cobb-Douglas production function form model and applied autoregressive distributed lagged (ARDL) regression. The paper found out that bank-based intermediary is the prevailing financial structure in Nigeria. Also, financial structure contributed positively to outputs in Nigeria within the period investigated. The study recommends that the banking sector should be developed in such a way that it would promote the development of the capital market, and continual development of the banking sector should be maintained.

Suggested Citation

  • Gidigbi, Matthew, 2019. "Re-examining the link between financial structure and economic growth in Nigeria: An empirical investigation," BizEcons Quarterly, Strides Educational Foundation, vol. 5, pages 3-21.
  • Handle: RePEc:ris:buecqu:0009
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    References listed on IDEAS

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    7. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    8. Hicks, J. R., 1969. "A Theory of Economic History," OUP Catalogue, Oxford University Press, number 9780198811633.
    9. Demirguc-Kunt, Asli & Levine, Ross, 1999. "Bank-based and market-based financial systems - cross-country comparisons," Policy Research Working Paper Series 2143, The World Bank.
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    Cited by:

    1. Yusuf, Ismaila Akanni & Mesagan, Ekundayo Peter & Amadi, Agatha Nkem, 2020. "Effect of financial deepening on stock market returns: The case of military and democratic post-SAP regimes in Nigeria," BizEcons Quarterly, Strides Educational Foundation, vol. 6, pages 3-21.

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    More about this item

    Keywords

    Economic growth; Capital productivity; Financial market; Financial structure;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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