2016_Financial Development, Trade Openness and Endogenous Output Growth Nexus in Nigeria
| Format: | General Document |
|---|
| _version_ | 1860798172476997632 |
|---|---|
| building | INTELEK Repository |
| collection | Online Access |
| collectionurl | https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 |
| copyright | Copyright©PWB2025 |
| country | Malaysia |
| date | 2016-02-28 |
| format | General Document |
| id | 16285 |
| institution | UniSZA |
| originalfilename | 16285_09413d9dd110480.pdf |
| person | Muhammad Rabiu Danlami |
| recordtype | oai_dc |
| resourceurl | https://intelek.unisza.edu.my/intelek/pages/view.php?ref=16285 |
| sourcemedia | Server storage Scanned document |
| spelling | 16285 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=16285 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Business and Management English application/pdf 1.5 Nigeria Server storage Scanned document Universiti Sultan Zainal Abidin UniSZA Private Access Universiti Sultan Zainal Abidin SAMBox 2.3.4; modified using iTextSharp™ 5.5.10 ©2000-2016 iText Group NV (AGPL-version) 112 Trade Openness Economic Growth Trade Openness Foreign direct investment Copyright©PWB2025 Financial Development 2016-02-28 16285_09413d9dd110480.pdf Muhammad Rabiu Danlami Endogenous Output Growth Nexus Financial development Endogenous growth theory 2016_Financial Development, Trade Openness and Endogenous Output Growth Nexus in Nigeria Acceleration of economic growth is the target of most developing countries and financial development plays a crucial role in the mobilization and allocation of resources to productive sectors of the economy. However, it is hard to ascertain whether financial development can stimulate growth in Nigeria. Therefore, this study investigated the short and long-run cointegration with the causal nexus between financial development and output growth in Nigeria. Structural Adjustment Programme (SAP) of 1986 in Nigeria is also incorporated into the study to examine the impact of liberalization of financial policy. This work utilized time series data covering the period from 1980 to 2013 based on the Cobb-Douglas production function model. The study used Autoregressive Distributed Lag model (ARDL) and combined cointegration test to examine the cointegration effects on the variables. The non-Granger causality analysis is also employed to determine the direction of causality among the variables. The empirical findings revealed that financial instability retard Nigeria’s economic growth and the ARDL test proves that there is a long-run relationship. The cointegration tests also led us to reject the null hypothesis and confirmed the existence of cointegration between the variables except for gross capital formation result that reveals the absence of cointegration. In the short-run period of analysis, financial liberalization policy has an adverse effect on output growth, while capital formation and money supply have a positive relationship with output growth in Nigeria. Trade openness and financial instability indicated an inverse relationship with output growth in both the short and long-run periods. Furthermore, the non-Granger causality test indicates that gross capital formation Granger-caused output growth and trade openness. Indeed, the money supply also has a causal effect on growth, and there is no feedback causality between the variables. Therefore, the study recommends that proactive measures need to be taken to sustain economic growth in the country through enhancing productivity level, encouraging savings culture and economizing resources to promote capital accumulation. Credit facilities need to be efficiently allocated for investment to thrive and policies that would overhaul the entire financial system should be implemented. These suggestions would help to boost the output growth level and development of the Nigerian economy as a whole in the future. Thesis |
| spellingShingle | 2016_Financial Development, Trade Openness and Endogenous Output Growth Nexus in Nigeria |
| state | Terengganu |
| subject | Trade Openness Economic Growth Foreign direct investment Financial development Endogenous growth theory |
| summary | Acceleration of economic growth is the target of most developing countries and financial development plays a crucial role in the mobilization and allocation of resources to productive sectors of the economy. However, it is hard to ascertain whether financial development can stimulate growth in Nigeria. Therefore, this study investigated the short and long-run cointegration with the causal nexus between financial development and output growth in Nigeria. Structural Adjustment Programme (SAP) of 1986 in Nigeria is also incorporated into the study to examine the impact of liberalization of financial policy. This work utilized time series data covering the period from 1980 to 2013 based on the Cobb-Douglas production function model. The study used Autoregressive Distributed Lag model (ARDL) and combined cointegration test to examine the cointegration effects on the variables. The non-Granger causality analysis is also employed to determine the direction of causality among the variables. The empirical findings revealed that financial instability retard Nigeria’s economic growth and the ARDL test proves that there is a long-run relationship. The cointegration tests also led us to reject the null hypothesis and confirmed the existence of cointegration between the variables except for gross capital formation result that reveals the absence of cointegration. In the short-run period of analysis, financial liberalization policy has an adverse effect on output growth, while capital formation and money supply have a positive relationship with output growth in Nigeria. Trade openness and financial instability indicated an inverse relationship with output growth in both the short and long-run periods. Furthermore, the non-Granger causality test indicates that gross capital formation Granger-caused output growth and trade openness. Indeed, the money supply also has a causal effect on growth, and there is no feedback causality between the variables. Therefore, the study recommends that proactive measures need to be taken to sustain economic growth in the country through enhancing productivity level, encouraging savings culture and economizing resources to promote capital accumulation. Credit facilities need to be efficiently allocated for investment to thrive and policies that would overhaul the entire financial system should be implemented. These suggestions would help to boost the output growth level and development of the Nigerian economy as a whole in the future. |
| title | 2016_Financial Development, Trade Openness and Endogenous Output Growth Nexus in Nigeria |
| title_full | 2016_Financial Development, Trade Openness and Endogenous Output Growth Nexus in Nigeria |
| title_fullStr | 2016_Financial Development, Trade Openness and Endogenous Output Growth Nexus in Nigeria |
| title_full_unstemmed | 2016_Financial Development, Trade Openness and Endogenous Output Growth Nexus in Nigeria |
| title_short | 2016_Financial Development, Trade Openness and Endogenous Output Growth Nexus in Nigeria |
| title_sort | 2016_financial development, trade openness and endogenous output growth nexus in nigeria |