OKORIE, George Chisom and Chikwendu, Nneka Francisca (2019) Does Private Sector Credit Impact on Private Sector Investment in Nigeria? International Journal of Research and Scientific Innovation (IJRSI), VI (XII). pp. 23-28. ISSN 2321–2705
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Abstract
- Theories have proved that a significant critical factor influencing private sector investment is credit to the private sector which has more significant effect on economic activities than credit to the public sector. This study therefore examines the extent to which private sector credit impacts on private sector investment in Nigeria. The ARDL model was engaged in data analysis. From the analysis, the following results were established, that private sector credit has positive and significant impact on private sector investment in the short run, but in the long run, private sector credit has positive and insignificant impact on private sector investment in Nigeria. Empirically, 1 percent increase in private sector credit in the short run leads to 0.77 percent increase in private sector investment. The study recommends that, monetary authorities pursue policies aimed at increasing availability of private sector credit. Such policies include reducing real interest rate by 1 percent so as to increase private sector investment by 0.01% in the short run. Furthermore, the study recommends that public expenditure should be channeled to addressing the poor state of physical infrastructure, particularly road networks, electricity and water supply.
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > HC Economic History and Conditions |
| Divisions: | Faculty of Management and Social Sciences |
| Depositing User: | mrs chioma hannah |
| Date Deposited: | 19 Feb 2020 08:19 |
| Last Modified: | 19 Feb 2020 08:19 |
| URI: | http://eprints.gouni.edu.ng/id/eprint/2534 |
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