Browsing by Author "Oyeleye, Olalekan"

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    Financial structure and economic growth in Nigeria (1986-2013)
    (Economics,Obafemi Awolowo University, 2016) Oyeleye, Olalekan
    The study examined the relationship between financial structure and economic growth in the Nigerian economy. It specifically examined the trend of financial structure and economic growth in Nigeria; the short and long run relationship between the financial structure and economic growth in Nigeria; and the causal relationship between the financial structure and economic growth in Nigeria. Secondary data were used for the study. Annual data on stock market total value traded ratio, domestic credit to private sector by Bank, Private Credit Ratio, gross fixed capital formation and real gross domestic product covering the period from 1986 to 2013 were sourced from World Bank Development Indicator. Data collected were analyzed using descriptive analysis (graphs, and tables) and econometric technique; Autoregressive Distributed Lag (ARDL) and Wald Causality test. The result showed that financial structure and economic growth has positive trends in the period of study. Market financial structure has a stable pattern in its growth rate but has its peak in 1995 and 2007 at 3.2 per cent. Similarly, bank financial structure increased from -0.2 per cent in 1987 to 0.4 per cent in growth rate in 1994 and a maximum of 0.84 per cent in 2004. Furthermore, the ARDL estimates indicated that bank financial structure has a significant positive impact on the real gross domestic product in the short run but has negative and significant effects on economic growth in the long run (t = -11.49588, p < 0.05) while market financial structure has a positive impact on the real gross domestic product in the short run and a significant positive relationship in the long run (t = 13.46307, p < 0.05). In addition, Wald causality test revealed that there is a bidirectional causality from market financial structure to real gross domestic product ,and a bidirectional causality between bank financial structure and real gross domestic product (χ2 =21.24953; p < 0.05) The study therefore concludes that there is a significant relationship between financial structure and economic growth in Nigeria.