Banks, markets, and economic growth in Nigeria.

OYEBOWALE, Adeola and ALGARHI, Amr Saber (2024). Banks, markets, and economic growth in Nigeria. Cogent Economics & Finance, 12 (1): 2359302.

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Abstract

This paper examines proxies of money market, capital market, and banks in Nigeria using annual data from 1961 to 2018. We employ autoregressive distributed lag (ARDL) bounds testing approach, Wald test, and vector error correction model (VECM) Granger causality technique to analyse the data. Our findings show that total subscriptions of treasury bills has a positive and negative statistically significant relationship with real gross domestic product (GDP) on the long-run and short-run, respectively. Hence, we argue that markets and banks exhibit competitive interaction in favour of markets in Nigeria. Additionally, our findings show a unidirectional short-run causality from real GDP to value of transactions on the Nigerian Stock Exchange (NSE). Furthermore, our results support the existence of growth-led finance view or demand-following hypothesis in Nigeria, as we observe a unidirectional long-run causality from real GDP to both value of money market instruments outstanding as at end-period and total subscriptions of treasury bills.

Item Type:	Article
Uncontrolled Keywords:	1503 Business and Management; 3505 Human resources and industrial relations; 3507 Strategy, management and organisational behaviour
Identification Number:	https://doi.org/10.1080/23322039.2024.2359302
SWORD Depositor:	Symplectic Elements
Depositing User:	Symplectic Elements
Date Deposited:	11 Jun 2024 09:11
Last Modified:	13 Jun 2024 09:00
URI:	https://shura.shu.ac.uk/id/eprint/33817

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