Causal Relationships between Financial Development, Foreign Direct Investment and Economic Growth the Case of Nigeria

Nwosa, Philip Ifeakachukwu; Agbeluyi, Ajibola Mary; Saibu, Olufemi

doi:10.5430/ijba.v2n4p93

Cited by 17 publications

(8 citation statements)

References 32 publications

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“…Trade openness and financial instability index indicated an inverse relationship with economic growth in both the short and long-run. This is in line with the results obtained by Nwosa et al (2011) and Loayza and Ranciere (2006) respectively. The reason is that, the strategies for development on either financial sector or trade liberalization is not seem to be effective for Sub-Saharan African countries (Gries et al., 2009).…”

Section: 000supporting

confidence: 93%

The effects of financial development and trade openness on Nigeria‘s dynamic growth

Danlami¹,

Loganathan²,

Štreimikienė³

et al. 2018

Economics &Amp; Sociology

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This study attempts to investigate the short and long-run cointegration with the causal nexus between financial developments, trade and output growth in Nigeria. The financial instability index was generated using the residual based analysis to account for the effect of financial instability on growth. To examine the cointegration effects, the study used Autoregressive Distributed Lag (ARDL) model. The non-Granger causality analysis was also employed to determine the direction of causality between the variables. We found that financial instability retards growth significantly while financial liberalization indicates positive impact, but insignificant effect on growth. The study concluded that there is a long-run nexus between financial development and economic growth in Nigeria. We recommend that proactive measures need to be established to sustain economic growth in the country through enhancing productivity level, encouraging savings culture and economizing resources to promote capital accumulation.

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Section: 000supporting

confidence: 93%

The effects of financial development and trade openness on Nigeria‘s dynamic growth

Danlami¹,

Loganathan²,

Štreimikienė³

et al. 2018

Economics &Amp; Sociology

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“…Granger's causal results suggested that financial development affects economic growth and vice versa. Also using Granger's causal test through the cointegration and error correction model, Nwosa and Al. (2011) studied the causal relationship between development, FDI and economic growth.…”

Section: Journal Of Agricultural Studiesmentioning

confidence: 99%

Financial Credit in Agricultural Development in Côte D'ivoire

Celestin¹

2021

JAS

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Agriculture has long been Côte d’Ivoire’s main source of export income and the first largest sector providing employment. For several decades, Ivorian agriculture remained unmodernized. The modernization of agriculture requires both public and private funding. Despite some efforts, financing of agriculture is not effective in Côte d'Ivoire due to the lack of real commitment from the private sector and commercial banks. The results showed that in the long-term agricultural credit and other variables have a positive and significant influence on agricultural added value. It is therefore recommended to increase agricultural credit and extend it to small producers.

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“…The effects of monetary stratagem on the different sectors of the economy do differ. Nwosa, Agbeluyi and Saibu (2011) identified two monetary policy regimes: tight and loose. The deployment of either type depends on the need to achieve prices stability and the maintenance of balance of payment equilibrium.…”

Section: Introductionmentioning

confidence: 99%

Monetary Policy and the Sustainability of the Manufacturing Sector in Nigeria

Onakoya

Ogundajo

Johnson

2017

RIC

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The conflicting results in relationship between monetary policy and the sustainability of the manufacturing sector necessitated this research. The study carried out some preliminary tests including the descriptive statistics and the Augmented Dickey Fuller unit root tests. The optimal lag length criteria, and the Johansen Co-Integration test were applied to verify long run association among the series. The Vector Error Correction model was estimated as a verification of the short run adjustment. The Breusch-Godfrey Serial Correlation Lm test, Durbin Watson Statistic, and Breusch-Pagan Heteroscedasticity tests were conducted. The results confirmed the existence of a long run relationship among the variables. A positive relationship between monetary policy and manufacturing sector performance in Nigeria was observed at the 5% level of statistical significance. No short run association between the external reserves and inflation rates was recorded. The study therefore recommends that the government avoid monetary policy summersaults.

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Causal Relationships between Financial Development, Foreign Direct Investment and Economic Growth the Case of Nigeria

Cited by 17 publications

References 32 publications

The effects of financial development and trade openness on Nigeria‘s dynamic growth

The effects of financial development and trade openness on Nigeria‘s dynamic growth

Financial Credit in Agricultural Development in Côte D'ivoire

Monetary Policy and the Sustainability of the Manufacturing Sector in Nigeria

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