scholarly journals The Impact of Financial Deepening on the Economy of Nigeria (1981-2018)

2020 ◽  
pp. 12-21
Author(s):  
Udeme Okon Efanga ◽  
Chinelo Okanya Ogochukwu ◽  
Georgina Obinne Ugwuanyi
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Private Sector ◽  
Positive Impact ◽  
Domestic Product ◽  
Financial Deepening ◽  
International Capital ◽  
Integration Test ◽  
The Many ◽  
The Impact

This study was carried out to investigate the impact of financial deepening on the Nigerian economy between 1981 and 2018. Data employed for this study was elicited from Central Bank of Nigeria Statistical Bulletin of 2018. This study employed real gross domestic product as proxy for economic growth in Nigeria (regress and), while ratio of money supply to gross domestic product, ratio of private sector credit to gross domestic product and ratio of market capitalization to gross domestic product were adopted as regressors. The co-integration test and Fully Modified Least Squares (FMOLS) Model were utilized to analyze data. Inferential results generated there from indicated that financial deepening had positive impact on the Nigerian economy within the period under review. To boost economic growth, we recommend at this time that monetary authorities implement monetary policies to increase money. In the same vein, Nigerian commercial banks should be encouraged to improve upon credit facilities made available to the private sector. Recognizing the positive impact of international capital, this study also recommends that Nigerian policy makers ease some of the many restrictions that currently limit entry of international capital. This singular act would most definitely lead to more companies being listed on the exchange. The result would be the attainment of even more depth to Nigeria’s economy.

Financial Deepening, Financial Intermediation and Nigerian Economic Growth: Time Variant Analysis

2019 ◽  
pp. 60-73
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Gross Domestic Product ◽  
Private Sector ◽  
Money Supply ◽  
Domestic Product ◽  
Financial Deepening ◽  
Causality Test ◽  
Real Gross Domestic Product ◽  
Long Run

This study examines financial deepening, financial intermediation and Nigerian economic growth. The main purpose is to examine the relationship between financial deepening and Nigerian economic growth while the specific objectives are to examine the impact of interest rate, capital market development, rational savings, credit to private sector and broad money supply on the growth of Nigerian. Secondary data of the variables were sourced from the publications of Central Bank of Nigeria (CBN) from 1981-2017. Nigerian Real Gross Domestic Product (RGDP) was used as dependent variable while Broad money supply (M2), Credit to Private Sector (CPS), National Savings (NS), Capital Market Capitalization (CAMP) and Interest Rate (INTR) was used as independent variables. Multiple regressions with E-view statistical package were used as data analysis techniques. Cointegration test, Augmented Dickey Fuller Unit Root Test, Granger causality test was used to determine the relationship between the variable in the long-run and short-run. R2, F – statistics and β Coefficients were used to determine the extent to which the independent variable affects the dependent variable. It was found from the regression result that Broad Money Supply, credit to private sector have position effect on the growth of Nigerian Real Gross Domestic Product while National Savings, Capitalization and Interest Rate on Nigeria Real Gross Domestic Product. The co-integration test revealed presence of long-run relationship among the variables, the stationary test indicated stationarity of the variables at level. The Granger Causality Test found bi – variant relationship from the dependent to the independent and from the independent to the dependent variables. The regression summary found 99.0% explained variation, 560.5031, F – statistics and probability of 0.00000. From the above, the study concludes that financial deepening has significant relationships with Nigerian economic growth. We recommend that government and the financial sector operators should make policies that will further deepen the functions of the financial system to enhance Nigerian economic growth.

scholarly journals Effects of the utilization of intellectual property by scientific researchers on economic growth in Mexico

PLoS ONE ◽  
2021 ◽  
Vol 16 (10) ◽  
pp. e0258131
Author(s):  
Luis Felipe Beltrán-Morales ◽  
Marco Antonio Almendarez-Hernández ◽  
Gerzaín Avilés-Polanco ◽  
David J. Jefferson
Keyword(s):  
Economic Growth ◽  
Intellectual Property ◽  
Gross Domestic Product ◽  
Present Article ◽  
Positive Impact ◽  
Domestic Product ◽  
National System ◽  
Utility Models ◽  
The Impact

The present article examines the impact of intellectual property (IP) utilization and concentration on economic growth in Mexico. The findings presented center on the use of different forms of IP by researchers in the National System of Researchers (SNI in Spanish) of Mexico. We focus especially on the externalities associated with the use of IP by researchers, as well as on understanding how knowledge about, and utilization of IP relates to economic growth, as measured by gross domestic product (GDP). The results of our analyses indicate that in the context of the Mexican SNI, the utilization of certain forms of IP, specifically patents and industrial designs, had a positive impact on economic growth, while the use of utility models was negatively linked to drivers of growth. Policies based on these results could seek to foster awareness and utilization of particular forms of IP by SNI researchers, which in turn could result in greater economic growth in Mexico.

scholarly journals GLOBALIZATION AND ITS IMPACT ON ECONOMIC GROWTH: EVIDENCE FROM ASEAN COUNTRIES

TRIKONOMIKA ◽  
2020 ◽  
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Positive Impact ◽  
Economic Globalization ◽  
Gdp Per Capita ◽  
Domestic Product ◽  
Brunei Darussalam ◽  
Per Capita ◽  
Asean Countries ◽  
The Impact

This study investigates the impact of globalization toward economic growth in ASEAN countries during 2012 to 2017. The research method used judgmental sampling with samples of 11 countries. They were Brunei Darussalam, Cambodia, East Timor, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. The analysis used path analysis to examine the impact between the variables of globalization and economic growth. Globalization was determined by globalization index, economic globalization, social globalization, and politic globalization. Real Gross Domestic Product (GDP) and Gross Domestic Product (GDP) per capita are used as a proxy for economic growth. The finding results are that globalization index, economic globalization, social globalization, and politic globalization have a significant positive association with Gross Domestic Product (GDP) and Gross Domestic Product (GDP) per capita. Overall globalization evidence the positive impact on economic growth in ASEAN Countries.

scholarly journals Analysis of the Impact of Exchange Rate, Inflation, Export and Import on Gross Domestic Product in Bangladesh

2019 ◽  
pp. 170-175
Author(s):  
Papi Halder
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Exchange Rate ◽  
Gross Domestic Product ◽  
Positive Impact ◽  
Domestic Product ◽  
Gdp Growth ◽  
Policy Makers ◽  
Gdp Growth Rate ◽  
The Impact

This study is about the impact of selected macroeconomic variables on economic growth of Bangladesh. Economic growth of Bangladesh is measured in terms of annual nominal GDP growth rate. Least squared regression model has been employed considering exchange rate, export, import and inflation rate as independent variables and gross domestic product as the dependent variable in this study. The results reveal that export and import have significant positive impact on GDP growth rate. The other variables (exchange rate and inflation) are not significant, indicating that there exists no significant relationship among the variables. The findings will help the policy makers to make policies concerning the country’s economic growth to remain robust in the near future.

scholarly journals The Effect of Unemployment Rate on the Gross Domestic Product in Nigeria (A Bayesian Approach)

2021 ◽  
Author(s):  
Victor Agboli
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Gross Domestic Product ◽  
Positive Impact ◽  
Linear Regression Analysis ◽  
Domestic Product ◽  
Policy Recommendations ◽  
Bayesian Linear Regression ◽  
The Impact ◽  
The Relationship

This study investigates the impact of unemployment on the Gross Domestic Product (GDP) of Nigeria for a period of 28 years (1990-2018). The study focuses on the relationship between unemployment and economic growth in Nigeria (GDP). The method used in this study is the Bayesian Linear Regression Analysis, the major findings were that unemployment has a positive impact on the economic growth of Nigeria. Some suggestions and policy recommendations were made based on the findings.

Effects of Financial Deepening on Saving Mobilization: Evidence from African Countries

2018 ◽  
Vol 9 (07) ◽  
pp. 20917-20928
Author(s):  
Daniel Kwabena Twerefou ◽  
Baafi Yaw Ayimadu
Keyword(s):  
Interest Rate ◽  
Gross Domestic Product ◽  
Private Sector ◽  
Money Supply ◽  
Financial Sector ◽  
Domestic Product ◽  
Financial Deepening ◽  
Domestic Savings ◽  
Domestic Credit ◽  
The Impact

Purpose:The purpose of this paper is to investigate the impact of financial deepening proxied by Broad Money Supply as a percent of Gross Domestic Product and Domestic Credit to Private Sector as a percentage of Gross Domestic Product on savings proxied by Gross Domestic Savings as a percent of Gross Domestic Product in Africa over the period 1998 – 2015  Design/methodology/approach: The study uses panel data of forty-two (42) countries in Africa over the period 1998 – 2015 and the system generalized method of moments dynamic panel estimation framework. Findings: The paper finds an insignificantly positive relationship between Broad money supply and Gross Domestic Savings in Africa. However, the impact of Domestic Credit to Private Sector was negative and significant. This results indicate that financial deepening has not stimulated domestic resource mobilization in Africa.  However, growth in per capita income had a significantly positive impact on Gross Domestic Savings which is consistent with the life cycle theory, increase in real interest rate negatively affected Gross Domestic Savings while increase in age dependency reduced Gross Domestic Savings.  Practical implications: Policies should focus on deepening the financial sector since it has the tendency to impact positively on savings. Such polices  should center on extending financial services to the rural areas through the provision of infrastructure such as roads, electricity as well as the development of innovative financial instruments that will attract the large informal sector.  Reducing the fragmented nature of the market and the high transaction costs as well as balancing the dominance of the banking sector will help improve efficiency of the sector and consequently, its ability to mobilize resources. Pursuing growth-enhancing policies that focus on value addition to raw materials and the adoption of technology to ensue efficiency in production could result in higher productivity and consequently savings. Efforts should also focus on reducing interest rates since many Africans are net borrowers and thus increase in interest rate will increase the cost of borrowing which will have adverse impacts on savings. Originality/value: The paper offers significant value in shaping and improving the financial sector in Africa with the view to enhancing savings.

Financial Deepening, Financial Intermediation and Nigerian Economic Growth: Time Variant Analysis

2019 ◽  
Vol 1 (1) ◽  
pp. 60-73
Author(s):  
Uzokwe Grace Onyinyechi
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Gross Domestic Product ◽  
Private Sector ◽  
Money Supply ◽  
Domestic Product ◽  
Financial Deepening ◽  
Causality Test ◽  
Real Gross Domestic Product ◽  
Long Run

This study examines financial deepening, financial intermediation and Nigerian economic growth. The main purpose is to examine the relationship between financial deepening and Nigerian economic growth while the specific objectives are to examine the impact of interest rate, capital market development, rational savings, credit to private sector and broad money supply on the growth of Nigerian. Secondary data of the variables were sourced from the publications of Central Bank of Nigeria (CBN) from 1981-2017. Nigerian Real Gross Domestic Product (RGDP) was used as dependent variable while Broad money supply (M2), Credit to Private Sector (CPS), National Savings (NS), Capital Market Capitalization (CAMP) and Interest Rate (INTR) was used as independent variables. Multiple regressions with E-view statistical package were used as data analysis techniques. Cointegration test, Augmented Dickey Fuller Unit Root Test, Granger causality test was used to determine the relationship between the variable in the long-run and short-run. R2, F – statistics and β Coefficients were used to determine the extent to which the independent variable affects the dependent variable. It was found from the regression result that Broad Money Supply, credit to private sector have position effect on the growth of Nigerian Real Gross Domestic Product while National Savings, Capitalization and Interest Rate on Nigeria Real Gross Domestic Product. The co-integration test revealed presence of long-run relationship among the variables, the stationary test indicated stationarity of the variables at level. The Granger Causality Test found bi – variant relationship from the dependent to the independent and from the independent to the dependent variables. The regression summary found 99.0% explained variation, 560.5031, F – statistics and probability of 0.00000. From the above, the study concludes that financial deepening has significant relationships with Nigerian economic growth. We recommend that government and the financial sector operators should make policies that will further deepen the functions of the financial system to enhance Nigerian economic growth.

scholarly journals The Impact of Financial Deepening on Economic Growth in Nigeria (1981-2018)

2020 ◽  
Vol 17 ◽  
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Interest Rates ◽  
Money Supply ◽  
Commercial Banks ◽  
Financial Sector ◽  
Financial Deepening ◽  
Growth Data ◽  
Main Research ◽  
The Impact

Different academics and experts have acknowledged that developing the financial sector positively impacts economic growth by increasing productivity, progress and national investment. Expanding the financial sector allows financial intermediaries to carry out functionalities of deploying, aggregating and directing a country’s savings into an investment which contributes to domestic progression. This research explores the effect of financial deepening on Nigeria’s growth for 38 years covering 1981- 2018. The main research goals were to investigate the linkages among time and savings deposit of commercial banks, money supply and credit to the private sector on the economy’s growth. Data was obtained from CBN Bulletin different issues and analyzed using Autoregressive Distributed Lag. From the result of analysis, we found out that long run relationship existed but no regressor was found to be significant. Credit to the private sector to GDP was inversely related to GDP growth whereas money supply to GDP had positive relations with economic growth rate, time and savings deposits in commercial banks negatively affected national growth. Policies favoring credit lending to the private sector should be encouraged by stakeholders in the economy, for instance, higher savings interest rates would encourage more savings. More importantly, policies should be enacted to make sure that savings are transmitted into productive investments that can yield financial deepness

scholarly journals Are Business Regulations Improving Economic Growth? Case Study between ASEAN and European Union

2021 ◽  
Vol 9 (1) ◽  
pp. 44-53
Author(s):  
Karuniana Dianta Arfiando Sebayang ◽  
Belinda Febrina
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Gross Domestic Product ◽  
Quantitative Research ◽  
Domestic Product ◽  
The European Union ◽  
Doing Business ◽  
Ease Of Doing Business ◽  
Business Regulations ◽  
The Impact

Economic activities require a transparent regulatory and policy environment that is accessible to all levels of society. This study aims to explain the impact of ease of doing business on economic growth in both ASEAN and the European Union since doing business indicators applied globally. Gross Domestic Product is used as a proxy variable for economic growth as Gross Domestic Product is an indicator to measure economic growth. This study uses a descriptive quantitative research model and uses multiple regressions to determine the effect of ease of doing business on economic growth in ASEAN and the European Union by comparing the result of each ASEAN and European Union. In this study it was found that in ASEAN, there are four indicators of doing business have significant impact to economic growth, while in the European Union five indicators have significant impact to economic growth.  

scholarly journals Impact of Domestic Public Debt on Economic Growth - An Empirical Study in the Indian Context

2016 ◽  
Vol 6 (4) ◽  
pp. 101-116
Author(s):  
Srinivasa Rao Gangadharan ◽  
Lakshmi Padmakumari
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Positive Impact ◽  
Least Square ◽  
Distributed Lag ◽  
Long Run ◽  
Domestic Debt ◽  
Integration Test ◽  
Ordinary Least Square Regression ◽  
The Impact

This study is an empirical investigation to assess the impact of domestic debt on India’s Economic growth during the period 1980 – 2014. We use data on Domestic Debt, Net Fiscal Deficit, Exports, Savings, Real Gross Domestic Product, Population and Terms of Trade. This study adopts the ARDL Co-Integration and Granger Causality techniques to investigate the relation between the key variables. The study also employs various post estimation tests to validate the fitness and stability of the models based on Gauss Markov assumptions, after employing the ordinary least square regression on various models. We find that debt negatively impacts economic growth while savings has a positive impact. The Auto Regressive Distributed Lag (ARDL) technique used to test the robustness suggests existence of co-integration among the variables. However, none of the long run co-efficient is significant. The granger causality and co-integration test results support the traditional view that debt negatively impacts economic growth.

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