Effects of financial Deepening on Economic Growth of Nigeria (1981-2016)

Igwebuike, Chidimma, Evangeline and UDEH, Sergius Nwannebuike and Okonkwo, Oluchi, Martha-Lucia (2019) Effects of financial Deepening on Economic Growth of Nigeria (1981-2016). International Academy Journal of Business Administration Annals, 7 (1). pp. 54-67. ISSN 2382-9175

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Abstract

This study examined effects of financial deepening on the economic growth of Nigeria (1981 to 2016) through two of the basic arms of the financial industry (Insurance companies and Banking Industry). Secondary data from CBN statistical bulletin and Global Financial Development bulletin, 2017 as provided by the World Bank were utilized. The study adopted an ex-post facto research design. The analytical tool used was Ordinary Least Squares (OLS). It was found that insurance industry premium to GDP has positive but no significant effect while credit to private sector by commercial banks to GDP has positive and significant effect on economic growth in Nigeria. Based on the results of the study, it was concluded that credit to private sector by commercial banks to GDP has significant effect while insurance industry premium to GDP has no significant effect on economic growth in Nigeria. It was recommended, among others, that the insurance industry should undergo another round of recapitalization to further widen their capacity to provide cover in the economy. In this position, they can create an environment of greater security, which will foster more investment and innovation and in extension economic growth.

Item Type:	Article
Subjects:	H Social Sciences > HF Commerce H Social Sciences > HF Commerce > HF5601 Accounting
Depositing User:	Miss Oluchi Okonkwo
Date Deposited:	15 May 2019 14:57
Last Modified:	07 Jun 2019 10:46
URI:	http://eprints.gouni.edu.ng/id/eprint/1451

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