Financial Deepening, Foreign Direct Investment and
Output Performance in Nigeria
Financial Deepening, Foreign Direct Investment and
Output Performance in Nigeria
Author(s): Mumeen Olatunbosun Alabi, Sheriffdeen Adewale Tella, Ibrahim A. Odusanya, Olumuyiwa Ganiyu YinusaSubject(s): Economy, National Economy, Business Economy / Management, Financial Markets
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: financial sector; co-integration; output; Nigeria;
Summary/Abstract: This study examines the relationship between financial deepening, foreign direct investment and output performance in Nigeria from 1980-2015 using the Autoregressive Distributed Lag (ARDL) Bound Test approach. A long-run relationship was established between financial deepening indicators, foreign direct investment and output performance in Nigeria. Foreign direct investment and market capitalization as a percentage of the GDP exerted significantly on output performance both in the short-run and in the long-run periods. It is recommended that financial depth should be enhanced through improved and highly efficient provision of credit by banks to the real sector of the Nigerian economy.
Journal: Scientific Annals of Economics and Business
- Issue Year: 65/2018
- Issue No: 2
- Page Range: 193-204
- Page Count: 12
- Language: English