The Impact of Financial Development on Economic Growth in Nigeria: An ARDL Analysis

Iheanacho, Eugene

doi:10.3390/economies4040026

Cited by 39 publications

(39 citation statements)

References 21 publications

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“…However, the use of emissions from the agricultural sector makes the study very different from the available literature. In addition, modeling the log-log model specification compared to a simple linear-linear specification would reduce the sharpness of time series data and thus provide efficient results [32].…”

Section: Materials and Econometric Methodsmentioning

confidence: 99%

Does Energy-Growth and Environment Quality Matter for Agriculture Sector in Pakistan or not? An Application of Cointegration Approach

et al. 2019

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The main objective of this paper is to examine the long-term effects of financial development, economic growth, energy consumption (electricity consumption in the agriculture sector), foreign direct investment (FDI), and population on the environmental quality in Pakistan during the period of 1980 to 2016. We use CO2 emissions from the agriculture sector as a proxy indicator for environmental quality. We employ various unit root tests (e.g., ADF, PP, ERS, KPSS) and structural break unit root tests (Z&A, CMR) to check the stationarity and structural break in the data series. Cointegration tests, i.e., Johansen, Engle-Granger, and ARDL cointegration approaches are used to ensure their robustness. Results showed that significant long-term cointegration exists among the variables. Findings also indicated that an increase in financial development and foreign direct investment (FDI) improves environmental quality, whereas the increase in economic growth and electricity consumption in the agriculture sector degrades environmental quality in Pakistan. Based on the findings, we suggest policymakers should provide a conducive environment for foreign investment. Moreover, it is also suggested that a reliance on fossil fuels be reduced and a transition to renewable energy sources be encouraged to decrease the environmental pollution in the country.

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Section: Materials and Econometric Methodsmentioning

confidence: 99%

Does Energy-Growth and Environment Quality Matter for Agriculture Sector in Pakistan or not? An Application of Cointegration Approach

et al. 2019

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“…The justification for the use of ARDL is established when variables are integrated of different orders ranging from level to first difference or both but not including second difference (Pesaran and Shin, 1998;Pesaran et al, 2001;Narayan, 2003Narayan, , 2004Duasa, 2007). ARDL method to Cointegration will give a perfect, accurate and efficient estimation of variables especially when their unit-roots results show a mixture of variables being stationary at level and first differences (Atif et al, 2010;Giles, 2013;Iheanacho, 2016;Marques et al, 2016;Olayungbo and Adediran, 2017). When all the variables are integrated to the order of zero, the regression will be more appropriate (Nkoro and Uko, 2016).…”

Section: Model Specificationmentioning

confidence: 99%

Impact of Non-life Insurance Penetration on the Economic Growth of Nigeria

2020

RJFA

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This study explores the impact of non-life insurance industry performance on economic growth in Nigeria. Insurance penetration is measured through five diverse proxies such as non-life insurance, savings, expenditures, investment and profits of the insurance industry with their time-series statistics covering the period 1988 and 2012. The ex-post facto research strategy and purposive (judgemental) sampling technique were discovered appropriate for the study as effectively utilised by several intellectuals in the past. Data were analysed using regression. The ordinary least square regression was adopted for the testing of the hypotheses. The outcomes of the study showed that non-life insurance penetration had a substantially positive effect on the economic growth in Nigeria during the period. Profit and investment are found to have a positive effect on the economy but statistically insignificant while Savings and government expenditure have an adverse effect on the economy. The study recommends an improved modification in insurance products, especially in non-life businesses to availing clients the chance of choosing from a diversity of products. The study, therefore, recommends an increase in the awareness of non-life insurance services for its impact to be felt at all levels and to encourage participation.

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“…Taking into account the persistent inconsistencies in the broad conclusions of earlier studies as such, the present study reviews some of the recent past studies related to the relationship between finance and growth. Iheanacho (2016) explored how financial depth has influenced Nigerian economic growth. The article focuses on the correlation between the creation of the financial intermediary and economic growth covering the years 1981-2011.…”

Section: Economic Growthmentioning

confidence: 99%

“…The impact of economic growth, oil price, and financial globalization uncertainty has also been modeled and studied separately in most studies. Iheanacho (2016); Ncanywa and Mabusela (2019) and Kazar and Kazar (2016) for example, modeled the effects of economic growth on financial development without including oil price or financial globalization uncertainty in their models. Similarly, Asongu et al (2017) and Farouq, Sulong, and Sambo (2020a) also model financial globalization uncertainty and financial development without including oil prices in their models.…”

Section: Introductionmentioning

confidence: 99%

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2020

International Journal of Business, Economics and Management

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A lack of financial scope has for long hinders the efficiency of the financial system in the African continent. In this paper, we investigate the effects of economic growth, oil price, and financial globalization uncertainty on financial development in six selected leading African countries, covering the period between 1976-2018. After the preliminary tests that confirmed the application of heterogeneous panel techniques, the paper was able used Larsson co-integration to establish the presence of long-run relationship among the variables, which the co-integration result confirms that. We further deployed Dynamic Common Correlated Effect (DCCE) for the elasticity estimation. The findings of the study based on the empirical analysis observed that both economic growth, financial globalization uncertainty and oil price affects the financial system of the sampled countries positively and statistically significant. We therefore, recommends that the sampled economies' policymakers should strategize and come up with suitable policies that will promote substantial economic growth, attracts more foreign investors and continue to be resilient in times of financial shocks. Contribution/Originality: This study contributes to the literature by analyzing the impact of economic growth, oil price, and financial globalization uncertainty on financial development in six selected leading African countries. somewhat doing well, while South Asia was above 46.8 percent on average. Were; Egypt had 25.5%, Nigeria paired with 10.9%,

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The Impact of Financial Development on Economic Growth in Nigeria: An ARDL Analysis

Cited by 39 publications

References 21 publications

Does Energy-Growth and Environment Quality Matter for Agriculture Sector in Pakistan or not? An Application of Cointegration Approach

Does Energy-Growth and Environment Quality Matter for Agriculture Sector in Pakistan or not? An Application of Cointegration Approach

Impact of Non-life Insurance Penetration on the Economic Growth of Nigeria

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