CREDIT CHANNELS OF FINANCIAL SECTOR DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA
The development of the Nigerian financial system has been scrutinized in the recent years as to whether the system support the growth of the economy according to financial sector development theories. However, the inability of previous studies to adequately pay attention to the credit channels of fi...
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| Format: | Article |
| Language: | English |
| Published: |
Technopress
2021-04-01
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| Series: | Journal of Public Administration, Finance and Law |
| Subjects: | |
| Online Access: | http://www.jopafl.com/uploads/issue19/CREDIT_CHANNELS_OF_FINANCIAL_SECTOR_DEVELOPMENT_AND_ECONOMIC_GROWTH_IN_NIGERIA.pdf |
| _version_ | 1818439919415066624 |
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| author | Oludayo Elijah ADEKUNLE Yetunde Tonia AYENI |
| author_facet | Oludayo Elijah ADEKUNLE Yetunde Tonia AYENI |
| author_sort | Oludayo Elijah ADEKUNLE |
| collection | DOAJ |
| description | The development of the Nigerian financial system has been scrutinized in the recent years as to whether the system support the growth of the economy according to financial sector development theories. However, the inability of previous studies to adequately pay attention to the credit channels of financial sector development necessitated this study. Thus, using data from 1986 to 2018, this study provide a nexus between credit channels of financial sector development and economic growth in Nigeria estimated with Autoregressive Distributed Lag technique (ARDL). Findings from the Bound Co-integration result suggested a long-run relationship between credit channels of financial sector development and economic growth in Nigeria. The study found and concluded that, credit to core sector and credit to government impede economic growth in the short, with credit to core sector stimulating economic growth in the long run. The study recommended that effective policies should be formulated to further allocate more credit to the core sector as major driver of economic growth. Credit allocated to government should be judiciously utilized for growth enhancing purposes. |
| first_indexed | 2024-12-14T18:04:07Z |
| format | Article |
| id | doaj.art-1644891a3fc44d69bda06205f1c954c2 |
| institution | Directory Open Access Journal |
| issn | 2285-2204 2285-3499 |
| language | English |
| last_indexed | 2024-12-14T18:04:07Z |
| publishDate | 2021-04-01 |
| publisher | Technopress |
| record_format | Article |
| series | Journal of Public Administration, Finance and Law |
| spelling | doaj.art-1644891a3fc44d69bda06205f1c954c22022-12-21T22:52:24ZengTechnopressJournal of Public Administration, Finance and Law2285-22042285-34992021-04-0110198592https://doi.org/10.47743/jopafl-2021-19-07CREDIT CHANNELS OF FINANCIAL SECTOR DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIAOludayo Elijah ADEKUNLE0https://orcid.org/0000-0002-5870-9384Yetunde Tonia AYENI1https://orcid.org/0000-0003-1727-8538Department of Banking and Finance, Adekunle Ajasin University Akungba-Akoko, Ondo State, NigeriaDepartment of Banking and Finance, Afe Babalola UniversityThe development of the Nigerian financial system has been scrutinized in the recent years as to whether the system support the growth of the economy according to financial sector development theories. However, the inability of previous studies to adequately pay attention to the credit channels of financial sector development necessitated this study. Thus, using data from 1986 to 2018, this study provide a nexus between credit channels of financial sector development and economic growth in Nigeria estimated with Autoregressive Distributed Lag technique (ARDL). Findings from the Bound Co-integration result suggested a long-run relationship between credit channels of financial sector development and economic growth in Nigeria. The study found and concluded that, credit to core sector and credit to government impede economic growth in the short, with credit to core sector stimulating economic growth in the long run. The study recommended that effective policies should be formulated to further allocate more credit to the core sector as major driver of economic growth. Credit allocated to government should be judiciously utilized for growth enhancing purposes.http://www.jopafl.com/uploads/issue19/CREDIT_CHANNELS_OF_FINANCIAL_SECTOR_DEVELOPMENT_AND_ECONOMIC_GROWTH_IN_NIGERIA.pdfcredit channel;growth;financial development;repression |
| spellingShingle | Oludayo Elijah ADEKUNLE Yetunde Tonia AYENI CREDIT CHANNELS OF FINANCIAL SECTOR DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA Journal of Public Administration, Finance and Law credit channel; growth; financial development; repression |
| title | CREDIT CHANNELS OF FINANCIAL SECTOR DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA |
| title_full | CREDIT CHANNELS OF FINANCIAL SECTOR DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA |
| title_fullStr | CREDIT CHANNELS OF FINANCIAL SECTOR DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA |
| title_full_unstemmed | CREDIT CHANNELS OF FINANCIAL SECTOR DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA |
| title_short | CREDIT CHANNELS OF FINANCIAL SECTOR DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA |
| title_sort | credit channels of financial sector development and economic growth in nigeria |
| topic | credit channel; growth; financial development; repression |
| url | http://www.jopafl.com/uploads/issue19/CREDIT_CHANNELS_OF_FINANCIAL_SECTOR_DEVELOPMENT_AND_ECONOMIC_GROWTH_IN_NIGERIA.pdf |
| work_keys_str_mv | AT oludayoelijahadekunle creditchannelsoffinancialsectordevelopmentandeconomicgrowthinnigeria AT yetundetoniaayeni creditchannelsoffinancialsectordevelopmentandeconomicgrowthinnigeria |