The Drivers of International Financial Integration and their Implications on the Nigerian Economy: An Error Correction Model Approach
<p>This study examined the determinants of international financial integration (IFI) and how they impact on the Nigerian economy over the period 1986-2015. The error correction model was employed to regress the key determinants of IFI against GDP growth, and to ascertain the speed of adjustmen...
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| Format: | Article |
| Language: | English |
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EconJournals
2018-11-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/7189 |
| _version_ | 1797917285709512704 |
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| author | Hillary Chijindu Ezeaku Kenneth Chikezie Anyalechi Josaphat. U.J. Onwumere E. J. Okereke |
| author_facet | Hillary Chijindu Ezeaku Kenneth Chikezie Anyalechi Josaphat. U.J. Onwumere E. J. Okereke |
| author_sort | Hillary Chijindu Ezeaku |
| collection | DOAJ |
| description | <p>This study examined the determinants of international financial integration (IFI) and how they impact on the Nigerian economy over the period 1986-2015. The error correction model was employed to regress the key determinants of IFI against GDP growth, and to ascertain the speed of adjustment. The results showed that financial market capitalisation and trade openness both have negative and insignificant influence on economic growth. The real effective exchange rate has positive but insignificant effect on economic growth while inflation exerted positive and significant impact on the economy. The Engel and Granger cointegration test result shows evidence of long-run association between economic growth and the independent variables. The dynamic estimate provided evidence of long-run causality running from IFI determinants to economic growth. The coefficient of the error correction term indicates that the system corrects disequilibrium in the previous period at the speed of 81.43% annually to get at the steady state.</p><p><strong>Keywords:</strong> Financial Integration, market capitalization, Openness, Growth, Cointegration</p><p><strong>JEL Classifications: </strong>F4, F43, G1</p><p>DOI: <a href="https://doi.org/10.32479/ijefi.7189">https://doi.org/10.32479/ijefi.7189</a></p> |
| first_indexed | 2024-04-10T13:10:53Z |
| format | Article |
| id | doaj.art-d7eab1a8654844ae97ff2a2e137737de |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T13:10:53Z |
| publishDate | 2018-11-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-d7eab1a8654844ae97ff2a2e137737de2023-02-15T16:12:38ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382018-11-018630343578The Drivers of International Financial Integration and their Implications on the Nigerian Economy: An Error Correction Model ApproachHillary Chijindu EzeakuKenneth Chikezie AnyalechiJosaphat. U.J. OnwumereE. J. Okereke<p>This study examined the determinants of international financial integration (IFI) and how they impact on the Nigerian economy over the period 1986-2015. The error correction model was employed to regress the key determinants of IFI against GDP growth, and to ascertain the speed of adjustment. The results showed that financial market capitalisation and trade openness both have negative and insignificant influence on economic growth. The real effective exchange rate has positive but insignificant effect on economic growth while inflation exerted positive and significant impact on the economy. The Engel and Granger cointegration test result shows evidence of long-run association between economic growth and the independent variables. The dynamic estimate provided evidence of long-run causality running from IFI determinants to economic growth. The coefficient of the error correction term indicates that the system corrects disequilibrium in the previous period at the speed of 81.43% annually to get at the steady state.</p><p><strong>Keywords:</strong> Financial Integration, market capitalization, Openness, Growth, Cointegration</p><p><strong>JEL Classifications: </strong>F4, F43, G1</p><p>DOI: <a href="https://doi.org/10.32479/ijefi.7189">https://doi.org/10.32479/ijefi.7189</a></p>https://www.econjournals.com/index.php/ijefi/article/view/7189 |
| spellingShingle | Hillary Chijindu Ezeaku Kenneth Chikezie Anyalechi Josaphat. U.J. Onwumere E. J. Okereke The Drivers of International Financial Integration and their Implications on the Nigerian Economy: An Error Correction Model Approach International Journal of Economics and Financial Issues |
| title | The Drivers of International Financial Integration and their Implications on the Nigerian Economy: An Error Correction Model Approach |
| title_full | The Drivers of International Financial Integration and their Implications on the Nigerian Economy: An Error Correction Model Approach |
| title_fullStr | The Drivers of International Financial Integration and their Implications on the Nigerian Economy: An Error Correction Model Approach |
| title_full_unstemmed | The Drivers of International Financial Integration and their Implications on the Nigerian Economy: An Error Correction Model Approach |
| title_short | The Drivers of International Financial Integration and their Implications on the Nigerian Economy: An Error Correction Model Approach |
| title_sort | drivers of international financial integration and their implications on the nigerian economy an error correction model approach |
| url | https://www.econjournals.com/index.php/ijefi/article/view/7189 |
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