Financial Deepening and Domestic Investment in Nigeria

Obafemi, Frances N.; Oburota, Chukwuedo Susan; Amoke, Chukwunonso V.

doi:10.5539/ijef.v8n3p40

Cited by 9 publications

(9 citation statements)

References 18 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The causal relationship between the financial inclusion and agricultural sector output in Nigeria has more indication for independent causality hypothesis. This is in conformity with the conclusion of Demetriades and Hussein (1996), Obafemi et al (2016) and Aye (2015). Though it does not agree with the a priori expectation but it does solidify the result of Error Correction Model (ECM) which revealed that DR, PLR, ACGSF, DDR and PLSE with P-value of 0.2717, 0.0927, 0.6080, 0.4361 and 0.0565 respectively do not have any significant effect on agricultural sector output in Nigeria within the period of study.…”

Section: Discussion Of Resultssupporting

confidence: 93%

Causality between Financial Inclusion and Agricultural Sector Output in Nigeria

Okuma

Nwoko

Elugom

et al. 2019

International Journal of Asian Social Science

View full text Add to dashboard Cite

Financial inclusionPrime lending rate Deposit rate Agricultural credit guarantee Scheme fund Demand deposit from rural areas and deposit money bank loan to small scale enterprises as a percentage of total loan. This study examines the causality between financial inclusion and Nigeria's agricultural sector output (AOG). Ex-post facto research design was used and the annual time series data for various years were obtained from the Central Bank of Nigeria's (CBN) Statistical Bulletin. The Unit Root Test, Engle -Granger Co-integration Test, Error correction Model (ECM) Test and Granger Causality Tests were used to analyse the data. Financial inclusion was proxied by the prime lending rate, the deposit rate, the agricultural credit guarantee scheme fund, the demand for deposits from rural areas and the deposits of bank loans to small scale enterprises as a percentage of total loan. The results revealed that financial inclusion explains 41% of the changes in the Nigerian agricultural sector output. Prob. (F-statistics) co-efficient of 0.070531 proved that the explanatory variables have an insignificant effect on the dependent variable and Granger Causality Test showed more support for the non-existence of a causal relationship between the variables of explanatory variables and the dependent variables. Hence, the study recommends that the agricultural and financial sectors operators be sensitized on the benefits of their services to each other through symposiums, lectures, seminars and workshops. The two sectors should be encouraged to depend on each other with the agricultural sector relying more on the services of conventional financial institutions than on unorganized or traditional financial bodies. Financial institutions should also concentrate more on rendering services to the agricultural sector.Contribution/ Originality: This study examines the causality between financial inclusion and the agricultural sector output in Nigeria (AOG).

show abstract

Section: Discussion Of Resultssupporting

confidence: 93%

Causality between Financial Inclusion and Agricultural Sector Output in Nigeria

Okuma

Nwoko

Elugom

et al. 2019

International Journal of Asian Social Science

View full text Add to dashboard Cite

show abstract

“…Fan and Dickie (2000) concluded that foreign direct investment (FDI) inflow stabilized the ASEAN-5 economies during the Asian financial crises. Obafemi et al (2016) examined the effect of financial deepening on domestic investment using financial deepening variables, such as banking spread and real interest rate from 1970 to 2013 and concluded that these factors exert a significant impact on investment. Using data from the Ghanaian economy, Musah et al (2018) examined the effect of FDI on the profitability of commercial banks and economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Thus, compared to related studies, this study differs in three main aspects. First, we investigate stability in the banking industry as a function of investment dynamics instead of reverse inquiry often found in the literature (Ndikumana, 2005; Obafemi et al , 2016). Second, we verify how MU may moderate such a relationship; and finally, we ascertain the role of governance in the surmised relationship between the stability of the banking industry and investment growth.…”

Section: Introductionmentioning

confidence: 99%

Banking industry stability and investment dynamics

Abaidoo

Agyapong

2021

JFRC

View full text Add to dashboard Cite

Purpose This paper aims to evaluate how strands of differing investments influence stability in the banking industry using data from 37 countries in Sub-Sahara Africa from 2000 to 2018. Design/methodology/approach Empirical analyses in the study were carried out using a two-step system Generalized Method of Moments estimation methodology. Findings Empirical results suggest that generally, growth in investments by governments, foreign investments and private domestic investments have a significant positive impact in stabilizing the banking industry. The empirical estimates further suggest that macroeconomic conditions such as macroeconomic uncertainty adversely affects the liquid reserve position of banks even during periods of appreciable growth in investments. Originality/value The authors present a different approach to the banking industry discourse. Instead of surmise the relationship with the direction of impact often emanating from the banking industry to other variables of interest or conditions, this study rather examines how investment dynamics among economies influence the stability of the banking industry overtime. In contrast to related studies, this study examines how strands of investment variables influence the stability of the banking industry. Specifically, this study is modeled to examine the extent to which variability in investment growth (using different investment variables) affect stability in the banking industry.

show abstract

“…The banking sector innovations in the financial delivery and inclusivity has displayed an increasing trend in recent years leading to increase in money supply in the economy. Besides financial deepening mobilizes savings into investment projects, and also increases the marginal productivity of capital through the intermediation function of well-informed financial institutions (Obafemi, Oburota & Amoke, 2016). In Kenya, based on the theoretical backgrounds, M-Pesa stands tall as one of the revolutionists enabling over 90% of the citizens to benefit from the transaction platform (McGath, 2018;Misati et al, 2021).…”

Section: B Financial Deepening Theorymentioning

confidence: 99%

The Influence of Digital Money on Economic Growth in Kenya

Ramos

Olweny²

2021

afmj

View full text Add to dashboard Cite

The growth of the economy is a concern to many because it has an influence on the progress of a country and its citizens. It is expected that an economy with a highly advanced digital money system should also experience high economic growth. However, statistics indicate that the economic growth rate in Kenya has been fluctuating and has failed to grow consistently despite numerous policy interventions. This study sought to establish the influence of digital money on Economic Growth in Kenya. The study incorporated a descriptive research technique and a time series approach to analyse the relationship between digital money and economic growth using Kenyan quarterly data from 2011 to 2020. Four variables were used as proxies to measure digital money: - the value of mobile money transactions, the value of cards money transactions, the value of internet banking (EFTs) transactions and agency banking. The findings revealed that all relationships that were tested were positive and significant each with p-Value that was less than 0.05. Further analysis showed F-Calculated (1, 38; α=0.05) was 32.909 (card transactions), 247.029 (EFT transactions), 297.118 (mobile transfer), and 571.417 (active agents). Therefore, the study recommended that there is need for an intensified campaign to sensitize the public on the importance of digital money owing to their flexibility and improved security as compared to carrying physical cash especially in the wake of the COVID-19 pandemic. To the policy makers, the findings suggest that there is need to solidify and enforce strong digital/ICT policy that promotes cashless payments.

show abstract

Financial Deepening and Domestic Investment in Nigeria

Cited by 9 publications

References 18 publications

Causality between Financial Inclusion and Agricultural Sector Output in Nigeria

Causality between Financial Inclusion and Agricultural Sector Output in Nigeria

Banking industry stability and investment dynamics

The Influence of Digital Money on Economic Growth in Kenya

Contact Info

Product

Resources

About