The Impact of Financial Deepening on the Economy of Nigeria (1981-2018)

Efanga, Udeme Okon; Ogochukwu, Chinelo Okanya; Ugwuanyi, Georgina Obinne

doi:10.9734/ajeba/2020/v15i130204

Cited by 4 publications

(3 citation statements)

References 2 publications

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“…For instance, capital and labour are included in the model following the argument of Solow's growth theory that the level of capital accumulation and labour productivity can affect output performance. Additionally, Efanga et al (2020) noted that the level of foreign direct investment inflow into the oil and non-oil industries can Effect of Crude Oil Revenue on the Oil and Non-oil Sectors in Nigeria stimulate the sector's performance. Additionally, trade with other countries can also affect the productivity of the oil and non-oil sectors (Nweze and Edame, 2016).…”

Section: Data and Analytical Techniquementioning

confidence: 99%

Effect of Crude Oil Revenue on the Oil and Non-oil Sectors in Nigeria

Salaudeen

2023

Acta Universitatis Sapientiae, Economics and Business

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The debate for oil-rich economies to plough their oil windfalls into real economic activities to spur diversification has become intense due to the deficit fiscal crisis and poor socio-economic profile of resource-abundant nations. Therefore, we use secondary data from the period between 1981 and 2020 to assess the impact of crude oil revenue on the oil and non-oil sector output performance in Nigeria. The study adopts the ARDL (i.e. autoregressive distributed lag) and the augmented Granger causality techniques to analyse the data. The ARDL regressions show that crude oil positively impacts oil sector performance, but the impact is only substantial in the short run. Crude oil revenue exerts a positive and insignificant effect on the short-run non-oil sector output, whereas, over the long run, it has a negative but significant effect. To propel growth, the study recommends using the excess crude oil earnings to develop non-oil sectors such as agriculture, services, and manufacturing.

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Section: Data and Analytical Techniquementioning

confidence: 99%

Effect of Crude Oil Revenue on the Oil and Non-oil Sectors in Nigeria

Salaudeen

2023

Acta Universitatis Sapientiae, Economics and Business

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“…The remaining 35% is derived from offshore production, which includes oil drilling in the deep continental shelf waters. As a result of the Middle East War in 1973, Nigeria had an extraordinary, unforeseeable, and unanticipated rise in wealth, which prompted a radical change in policy to make sure a comprehensive approach of determining the oil sector's standing benchmark (Efanga et al, 2020;Ogunmakin et al, 2014). Nigeria's oil production capacity, according to projections by The Nigerian National Petroleum Corporation (NNPC), was 2 million barrels per day as of 2020, however, it dropped to its low point of 1.14 million barrels per day in January 2021.…”

Section: Introductionmentioning

confidence: 99%

Oil Revenue and Sustainable Economic Growth in Nigeria: Empirical Analysis

Dauda

Alege

Ewetan

et al. 2023

IJEEP

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In this study, the nexus between the generated oil revenue in Nigeria from 1981 to 2021 and its possible influences on the relative growth of the economy on a sustainable basis has been investigated. Utilizing the Johansen Co-Integration test, Granger Causality Technique as well as the Error Corrections Mechanism (ECM) to analyze the sourced data from both the World Development Indicators and the Nigeria Centra Bank. The findings depict the occurrence of a long-run connection amongst the variables of the study as both the eigenvalue test and trace test depict two and three cointegrating equations respectively at a 5% level of significance. 34.8% of short-run errors are rectified annually, according to the error correction mechanism. As a result, the coefficient reflects the rate of adjustment at which the RGDP's short and long runs are tied together. Further findings reveal that economic growth (RGDP) granger caused oil revenue (OREV) and that the generated oil revenue in Nigeria (OREV) granger caused economic growth (RGDP) during the study period. This suggests that the generated oil revenue in Nigeria (OREV) and economic growth (RGDP) relationship is causally bidirectional. This study, therefore, recommends the creation and efficient implementation of policies that facilitate prudent identification, collection and utilization of the generated oil income and adequate deployment to critical underdeveloped and developing sectors of the economy.

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“…real GDPAkintola and Cole (2020),Arumona et al (2020),Efanga et al (2020),Ibrahim and Mohammed (2020), Idris (2020), Owen (2020), Ubesie et al (2020), Erasmus et al (2021), Imade (2021), Okafor et al (2021), Mamudu & Gayovwi (2020), Ananwude and Osakwe (2017), Taiwo et al (2016), Nwaolisa et al capitalisation on real GDP Nzomoi and Ikikii (2013) Source: Authors compilation (2022).…”

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confidence: 99%

Impact of Capital Market Performance on Economic Growth in Developing Nations: A Qualitative Approach

Bello¹,

Zubairu²,

Ibrahim³

2022

JSSM

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The recapitalisation of Nigerian banks improved capital market performance and economic growth. However, economic recessions led to a decline in capital market activities and economic growth. Therefore, this study assessed the influence of capital market performance on economic growth in developing countries for the period 2012 to 2022 using empirical evidence. The specific objective of the study was to examine the impact of market capitalisation on the real gross domestic product (GDP) in developing nations. Related and relevant literature was reviewed for the conceptual, theoretical, and empirical framework for the study. The study employed a qualitative approach using descriptive synthesis to evaluate the results of the impact of capital market performance on economic growth in developing countries using empirical evidence from 2012 to 2022. The analysis revealed that 30% of empirical results from the capital market and economic growth studies in developing nations are not consistent with the apriori expectation. The study concludes that using different variables and approaches for time series analysis produces inconsistent results in developing countries. The study recommended encouraging the financing of companies through domestic capital formation in both capital and money markets. There is also a need for harmonising the approach for consistency of findings in capital market research.

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The Impact of Financial Deepening on the Economy of Nigeria (1981-2018)

Cited by 4 publications

References 2 publications

Effect of Crude Oil Revenue on the Oil and Non-oil Sectors in Nigeria

Effect of Crude Oil Revenue on the Oil and Non-oil Sectors in Nigeria

Oil Revenue and Sustainable Economic Growth in Nigeria: Empirical Analysis

Impact of Capital Market Performance on Economic Growth in Developing Nations: A Qualitative Approach

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