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 |
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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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