FINANCIAL DEVELOPMENT, TRADE OPENNESS AND ECONOMIC GROWTH IN NIGERIA

Bowale, Ebenezer I.K and Ogundiran, M. O. and Progress, Anyatonwu and Oloyede, Betsy (2019) FINANCIAL DEVELOPMENT, TRADE OPENNESS AND ECONOMIC GROWTH IN NIGERIA. International Journal of Novel Research in Marketing Management and Economics, 6 (2). pp. 47-54. ISSN 2394-7322

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Abstract

The study investigates the effect(s) of financial development and trade openness on economic growth in Nigeria over the period of 1980 – 2017. It made use of empirical data to explore the channels through which financial development would influence economic growth in Nigeria specifically in the context of international trade openness and foreign direct investment. The economic model is designed such that it investigates the long run relationship among the three variables, the Autoregressive Distributed Lag Model (ARDL) Bounds co-integration approach was adopted for the analysis. Result findings show that there are strong evidences of the long-run relationship between financial development, Trade Openness and economic growth in Nigeria. The broad money supply has a positive but insignificant effect on the nation’s Gross Domestic Product in the short run while Credit to Private Sector ratio has a negative but significant effect on Gross Domestic Product in the short run in Nigeria. The short run and long run model shows that both the trade Openness policies and financial development policies are significant variables in the development of the Nigerian economy; this calls for effective policy measures to address the challenge of economic growth.

Item Type:	Article
Uncontrolled Keywords:	Financial Development, Economic Growth, Nigeria, Trade Openness
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HJ Public Finance
Divisions:	Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User:	nwokealisi
Date Deposited:	19 Mar 2024 15:04
Last Modified:	19 Mar 2024 15:04
URI:	http://eprints.covenantuniversity.edu.ng/id/eprint/17845

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