Finance and Growth Nexus in Nigeria: Do Bank-Based and Market-Based Argument Matter?

Abstract

<p>This paper contributes to the finance and growth debate by examining the channels through which bank and<br />market promote economic growth in Nigeria. The paper used 17 years time series data, 1992-2008, to fill this<br />knowledge gap. The formulated models were estimated with the Ordinary Least Square regression. The growth<br />rate of GDP per capita was adopted as the dependent variable, while bank size, bank activity, bank efficiency,<br />market size, market activity and market efficiency were adopted as the independent variables. The regression<br />coefficient for bank size, bank efficiency, market size and market efficiency were positive in promoting<br />economic growth. However, the coefficient of bank activity and market activity were negative in promoting<br />economic growth in Nigeria. The finding of the study relegates the financial structure arguments to the shadows,<br />and recommends for favourable macroeconomic environment that will allow for the development of the<br />financial system.</p

Islamic Finance Development and Economic Growth Nexus: The Case of the United Arab Emirates (UAE)

“…Subsequently, a growing body of literature has covered this topic in several contexts and using various estimations for both financial development and economic growth (Sunde, 2012;Stievano, 2004;Halicioglu, 2007;Abu-Bader and Abu-Qarn, 2006;AlMalkawi and Abdullah, 2011;Pradhan, 2009;Conley, 2012;Stolbov, 2013;Khan, 2000;Shan and Jianhong, 2006;Ujunwa et al, 2012;Al-Malkawi et al, 2012). Generally there are at least three types of causal relationships found between financial development and economic growth, namely, supply-leading, demandfollowing and bi-directional causal relationships.…”