The Impact of Inflation on Financial Sector Development: Evidence from Nigeria

Afangideh, Udoma J.; Garbobiya, Tuwe Soro; Umar, Farida Bello; Usman, N

doi:10.5539/ijef.v12n2p56

IJEF

2020

DOI: 10.5539/ijef.v12n2p56

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The Impact of Inflation on Financial Sector Development: Evidence from Nigeria

Udoma J. Afangideh¹,

Tuwe Soro Garbobiya²,

Farida Bello Umar³

et al.

Abstract: This paper examines the Impact of inflation on financial sector development in Nigeria using quarterly data from 2002-2017. Financial sector development is proxied using money supply as a share of GDP (M2/GDP).The Auto-Regressive Distributive lag (ARDL) model is employed to carry out the estimation given the weakness of the Engle-Granger residual-based cointegration technique to test the long-run and short-run effects of the impacts of inflation on financial sector development. The results of the estimation re… Show more

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2024

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The Effect of Financial Development on Inflation Rate in Rwanda

Ajao,

Ifeanyi,

Claude

2024

Wseas Transactions on Business and Economics

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A well-developed financial system plays an important role in the economic performance of a country. Thus, the role of financial development and its functions in stimulating economic performance is concrete. However, the economy of Rwanda has experienced an accelerated inflation rate in recent times. The study adopted an ex post facto design to ascertain the effect of financial development on the inflation rate in Rwanda over a period of 12 years. Time series data were collected from 2011-2022. Ordinary Least Squares (OLS) were also adopted. The findings revealed that financial liberalization, domestic credit to the private sector, monetary policy rate, market capitalization, and all share indexes jointly did not influence the inflation rate in Rwanda (Adj.R2 = 14.39%, p = 0.3524 > 0.05, F-stat = 1.3699). The study concluded that financial development did not affect the inflation rate in Rwanda during the period under review. The study recommends that the government of Rwanda should improve on financial development through improving macroeconomic factors such as liberalization of the financial sector and strengthening the channels of credit to the private sector.

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The Effect of Financial Development on Inflation Rate in Rwanda

Ajao,

Ifeanyi,

Claude

2024

Wseas Transactions on Business and Economics

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show abstract

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The Impact of Inflation on Financial Sector Development: Evidence from Nigeria

Cited by 1 publication

References 8 publications

The Effect of Financial Development on Inflation Rate in Rwanda

The Effect of Financial Development on Inflation Rate in Rwanda

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