FINANCIAL DEVELOPMENT AN<t> ECONOMIC GROWTH: FURTHER EMPIRICAL EVIDENCE FROM NIGERIA

Saibu, M.O and Bowale, Ebenezer I.K (2006) FINANCIAL DEVELOPMENT AN<t> ECONOMIC GROWTH: FURTHER EMPIRICAL EVIDENCE FROM NIGERIA. JOURNAL OF ECONOMIC THOUGHT.

PDF Download (4MB)

Abstract

The paper examined the relative effects of bank and stock market on economic /grol1·th in Nigeria using data from 1970 to 200-1. In addition, the study investigated whether it is the changes in the financial structure or the overall .financial systems that explain better the economic growth dynamics in Nigeria. Using annual time series data ji"om 1970-200./ a vector error correction model was specified to analyse the data and draH' polic,J' inferences. The time series properties of the 'variables were also examined to avoid spunous regression. The result showed that there was significant d~f.lerence in the effects of stock market and bank on economic growth. Specifically, while bank development had negative effect (albeit) insignificant on economic growth, stock market had Significant positive effect on economic growth. The result showed further that deSpite the negative effect of bank on economic growth. bank was found tv have positive effect on stock market development,.More importantly. the result also revealed that changing financial structure was too weak to affect the mte of economic growth hence suggesting that neither the bank based nor market based system is dominant rather it was the quality of services rendered that mattered in the case of Nigerian economy.

Item Type:	Article
Uncontrolled Keywords:	Bank, Stock market, Financial Structure and Economic growth
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory
Divisions:	Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User:	AKINWUMI
Date Deposited:	05 Oct 2022 14:33
Last Modified:	05 Oct 2022 14:33
URI:	http://eprints.covenantuniversity.edu.ng/id/eprint/16275

Actions (login required)

View Item