Financial Development and Economic Growth in Emerging Markets: The Nigerian Experience

Authors

  •   Tomola Marshal Obamuyi Associate Professor of Finance, Department of Banking and Finance, Adekunle Ajasin University, P.M.B.001, Akungba-Akoko, Ondo State

Keywords:

Financial Development, Economic Growth, Causality Test, Vector Error Correction Model.

Abstract

The paper provides new evidence on the empirical relationship between financial development and economic growth in Nigeria. Time-series data from 1973 to 2009 were employed to run the econometric analysis of cointegration and Vector Error Correction Model (VECM). The Granger causality test was also adopted to test the direction of causality between financial development and economic growth in the country. The results of the study reveal that there exists a bi-directional causality between economic growth and financial development in the country. The results of this study provide evidence for the government to identify those financial development and growth variables that contribute to the overall economic performance in Nigeria.

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Published

2012-04-01

How to Cite

Obamuyi, T. M. (2012). Financial Development and Economic Growth in Emerging Markets: The Nigerian Experience. Indian Journal of Finance, 6(4), 16–27. Retrieved from https://indianjournalofcomputerscience.com/index.php/IJF/article/view/72423

Issue

Volume 6, Issue 4, April 2012

Section

Articles

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