The Effect of Financial Liberalization on Selected Macroeconomic Variables: Lesson From Nigeria

Okpara, Godwin Chigozie

doi:10.3923/ijaef.2010.53.61

Cited by 18 publications

(14 citation statements)

References 5 publications

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“…Omoke (2010) concludes that trade openness and financial development have causal impact on economic growth. Others who find similar results that financial development is important for economic growth are Gallego and Loayza (2002), Soukhakian (2007), Esso (2010) Okpara (2010) to mention a few. However, Yacel (2009) in his study of Turkish economy for the period 1989 to 2007 concludes that financial development has a negative effect on growth.…”

Section: Literature Reviewmentioning

confidence: 79%

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Relative potency of financial repression and liberalization on financial development and economic growth: An empirical survey

Okpara¹

2010

AJSIR

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This paper assessed the relative potency of financial repression and liberalization in Nigeria. The relative effect of financial development on economic growth during these two policy periods was considered using multiple regression analysis which was tested and proved not to be spurious. Furthermore, the paired comparison test was employed to determine whether financial liberalization causes observed improvement in the growth of the economy. The results reveal that financial development during the period of financial liberalization significantly impact more on the growth variable (GDP). Also, the paired comparison test shows that financial liberalization causes observed improvement in the growth of the economy and the well measured financial development. The banking system however is noted to be bedecked with crisis. The researcher therefore recommends that putting in place financial superstructure should precede the adoption of financial liberalization in order to reap the best thereof.

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Section: Literature Reviewmentioning

confidence: 79%

“…These risks they maintain increase significantly in the absence of prudential regulation and strong supervision of banks and other liberalized capital market segments. Okpara (2010) recommends that governments pursuing financial liberalization should set up an agency that will follow up action to forestall bank failure.…”

Section: Literature Reviewmentioning

confidence: 99%

Relative potency of financial repression and liberalization on financial development and economic growth: An empirical survey

Okpara¹

2010

AJSIR

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“…Okpara [21] studies the effect of financial liberalization on macroeconomic variables, employing three alternative test, namely parametric paired sample statistic t test, nonparametric Wilcoxon signed rank test to treat for macroeconomic variable sensitivity to financial liberalization and the discriminating analysis to determine the direction of the variables in response to financial liberalization. The findings of the study led to the conclusion that though financial liberalization has a positive effect on economic growth, its effect on savings was limited.…”

Section: Brief Review Of Literaturementioning

confidence: 99%

Modelling financial openness growth-nexus in Nigeria: evidence from bounds testing to cointegration approach

Fasanya

Olayemi

2020

Futur Bus J

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Financial liberalization is theoretically known to be an important driver of economic growth; the emergence of new industries, the availability of money in the circulation and how it affects prices, extent of international trade in the countries among others are necessities that any economy cannot survive without. This paper examines the impact of financial liberalization on economic growth in Nigeria for the period of 1981-2013 using the autoregressive distributed lag bounds testing approach. The findings of this study reveal strong relationship between the indicators of financial liberalization and economic growth in Nigeria. We find that very high levels of financial openness generally erode the growth-promoting role of financial development. From the policy perspective, there is an ardent need to stabilize the performance of financial system in Nigeria.

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“…Okpara [1] explored the effect of financial liberalization on some macroeconomic variables in Nigeria. Real GDP, foreign direct investment, gross national savings, financial deepening and inflation rate were the variables selected for study.…”

Section: Empirical Reviewmentioning

confidence: 99%

“…With the globalization trend, Nigeria introduced the SAP in 1986 as a remedial measure to the deteriorating economic condition. The fundamental drive of the economic restructuring embodied in SAP is financial deregulation [1]. In other words the main objective of the adjustment programme is the liberalization of financial markets, which has been recommended as a policy to overcome the problems of financial resources and in general entails interest rate deregulation and abolition of the policy of directed credits.…”

Section: Introductionmentioning

confidence: 99%

Financial Liberalization and Nigerian Economic Growth: 1990-2018

Omopintem¹,

Chukwu

2019

AJARR

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This study examined the Effect of Financial Liberalization on Nigerian Economic Growth (1990-2018) using secondary data from Statistical bulletin of Central Bank of Nigeria. The research work selected Nigeria as its sample and used the ECM to test the effect of the independent variables (Foreign direct investment, Interest rate, Trade openness, Foreign portfolio investment, Currency exchange rate Aggregate savings) on the dependent variable, economic growth (proxy by Gross Domestic Product). The study found that financial liberalization had negative and insignificant effect on economic growth of Nigeria. The study therefore recommends among others that Government should aim at creating conditions which make private investment attractive, avoid drastic policy reversal and implement appropriate interest rate policies.

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The Effect of Financial Liberalization on Selected Macroeconomic Variables: Lesson From Nigeria

Cited by 18 publications

References 5 publications

Relative potency of financial repression and liberalization on financial development and economic growth: An empirical survey

Relative potency of financial repression and liberalization on financial development and economic growth: An empirical survey

Modelling financial openness growth-nexus in Nigeria: evidence from bounds testing to cointegration approach

Financial Liberalization and Nigerian Economic Growth: 1990-2018

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