Financial Sector Development and Economic Growth in Nigeria (1990-2020) (Published)
In order to establish whether there is a causal relationship between the financial sector development and economic growth during the sample period of 1990–2020, the article investigates the relationship between the development of the financial sector and economic growth in Nigeria.The Autoregressive Distributive Lag (ARDL) Model is used in this work to measure and a useful tool for determining whether there is long-term relationship between economic data series. The ARDL model can be used to predict and distinguish between short-term dynamics and long-term relationships. Tests like the long-run relationship are used to determine the data’s stationarity characteristics and their long-term relationship & short-run tests, bounds tests, heteroskedasticity tests, serial correlation, and co-integration tests were used. Financial intermediaries(FINIM), financial depth(FINDEPT), and market stock(MKTSTCK) all have a causal relationship with the real gross domestic product(RGDP), according to the study. Economic growth is significantly impacted by the growth of the financial industry. The public and private sectors must be informed about operations in the financial industry. The World Bank’s World Development Indicators (2020) database, which covered the years 1990 to 2020, and the Central Bank of Nigeria’s Statistical Bulletin were the sources for all data.
Keywords: Development, Financial Depth, Financial Sector, economic growth, financial intermediaries, real gross domestic product and stock market