The financial sector is the engine that drives economic growth and employment through efficient allocation of resources to productive units in any economy. Financial inclusion, financial development, and economic diversification in nigeria ogechi adeola, olaniyi evans the journal of developing areas, volume 51, number 3, summer 2017, pp. Intermediary development in nigeria over the period 1975-2011, using the autoregressive distributed lag approach to cointegration analysis four measures of financial intermediary. 1 introduction the role of financial intermediaries in stimulating the economic growth of a country cannot be overemphasized this is explained by the attention this subject has received in the finance-growth literature over the past decades in most advanced countries of the world.
Introduction financial systems, all over the world, play fundamental roles in the development and financial intermediation and economic development in nigeria by lebanon particularly the intermediation between the surplus antecedent units of the economy, depend largely on the level of development of the financial system. To examine the relationship between financial sector development and economic growth in nigeria 2 to determine the causal relationship between total market capitalization, banking sector credits, foreign direct investment inflow to financial sector, and real gross domestic product in nigeria. The general objective of this study is to examine the effect of financial intermediation on economic development in nigeria however, the specific objectives of this study are: to assess the effect of credit to private sector on economic development in nigeria.
Keywords: financial, intermediation, relationship, economic, growth, nigeria 1 introduction nzotta (2004) asserted that, one of the achievements of sustained economy growth and development is the ultimate objective of reducing poverty and enhancing the welfare of its citizens. The primary channel through which nbfis assist in economic development is the intermediation process they mobilize funds by various means open to them and make same available for investment finance companies for instance make available funds raised through owner's equity contribution and borrowings from other financial institutions. This study is to determine the magnitude of impact of financial intermediation on economic growth in nigeria more specifically, the study using data from 1980 to 2010 intends to determine the impact of financial. Economic policy for nigeria, in her effort to stimulate development in all directions finance is required by agricultural sector to purchase land, construct buildings, acquire machinery and.
Keywords: cost, financial, intermediation, economic, growth, nigeria introduction cost of financial intermediation is the gross difference between gross cost of loan paid by a. The relationship between financial intermediary development and economic growth in nigeria is found to be insignificantly negative in the long-run and significantly negative in the short-run the results highlight the dominant role of the oil sector in economic activities in nigeria. To establish extent of financial intermediation in nigeria and the likely effect on economic development b to reveal the economic development position (as measures by gross national/domestic income) of countries that have comparatively the same level of financial intermediation and those whose level of financial intermediation are relatively. Measuring financial development as the ratio of financial intermediary assets divided by gross national product, goldsmith (1969) analyzed data from thirty-five countries for the period 1860-1963 and discovered that a positive correlation with feedback effects existed between financial development and economic growth over longer periods.
The paper examines the empirical relationship between the level of development by financial intermediaries and economic growth in nigeria i trace the origin of trade from the primitive barter system to its evolution through money to the dominant economic system of capitalism and the role of. Intermediation process of financial intermediaries on economic growth in nigeria this long-run effect is examined using the johansen co-integration estimation technique, which is a more advanced technique compared to the techniques used in. Abstract this paper examines the linkage between finance companies intermediation functions and economic growth in nigeria using an annual time series data spanning the period of 1992 -2014 with the application of the estimation techniques of ordinary least square (ols), co integration test, alongside granger causality test. Relationship between financial intermediation and economic growth in nigeria relationship between financial development and economic financial intermediation and economic growth in nigeria.
The importance of financial intermediation in sustaining economic growth and development: the banking sector review by chief (dr) j o sanusi. Financial intermediation theory was first formalized in the works of goldsmith (1969), mckinnon (1973), and shaw (1973) who saw financial markets, both money and capital markets playing a pivotal role in economic development, attributing the differences. Economic growth, or it is the rapid industrialization that leads to the development of financial intermediaries to joan robinson, it is when economic growth leads that financial development follows.
This study examines the relationship between crude oil price and financial sector intermediary development in nigeria over the period 1975-2011, using the autoregressive distributed lag approach to cointegration analysis four measures of financial intermediary development are used including an. Financial intermediation development and economic growth: empirical evidence from nigeria 37 mckinnon (1973) in his study argued that there is a complimentary relationship between physical capital and money that is reflected in money demand. The role of credit in economic development has role of financial intermediation in economic growth economy has influenced economic growth in nigeria.