Financial Deepening and Economic Growth in Nigeria: A Johannsen and Error Correction Model Techniques

Okafor, Victoria and Bowale, Ebenezer I.K and Onabote, Ademola and Afolabi, A.O. and Ejemeyovwi, Jeremiah Ogaga (2021) Financial Deepening and Economic Growth in Nigeria: A Johannsen and Error Correction Model Techniques. International Journal of Financial Research. pp. 263-273. ISSN 1923-4023 E-ISSN 1923-4031

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Abstract

The desire to ascertain the kind of relationship between finance and growth is not new among scholars. This study attempted to give a better understanding of the type of relationship by analysing post-SAP (Structural Adjustment Programme) time-series data since the notable financial reforms began with SAP in Nigeria. The study employed the Johannsen Cointegration, error correction and granger causality as estimation techniques to determine the nexus between financial deepening and economic growth. The variables contained in the model include the ratio of credit to the private sector to gross domestic product (CPS) which proxy bank-based financial deepening, the proportion of market capitalisation to gross domestic product (MCAP) which proxy for stock market development. The result of the analysis revealed that the Nigerian economic growth is influenced by financial deepening positively and significantly, especially the bank-based financial depth.

Item Type:	Article
Uncontrolled Keywords:	economic growth, financial deeping, financial intermediaries, financial markets, market capitalisation
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory T Technology > TH Building construction
Divisions:	Faculty of Engineering, Science and Mathematics > School of Civil Engineering and the Environment Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User:	nwokealisi
Date Deposited:	28 Feb 2023 09:31
Last Modified:	28 Feb 2023 09:31
URI:	http://eprints.covenantuniversity.edu.ng/id/eprint/16652

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