An Empirical Investigation of the Impact of Microfinance Bank Loans and Advances on Nigeria’s Industrial Output

ONWUBU, Chinemerem Nancy and OKORIE, George Chisom (2018) An Empirical Investigation of the Impact of Microfinance Bank Loans and Advances on Nigeria’s Industrial Output. GOUni Journal of Management and Social Sciences, 4 (2). pp. 225-230. ISSN 2550-7265

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Abstract

The study empirically investigated the impact of microfinance bank loans and advances on industrial output in Nigeria. It made use of annual secondary data sourced from CBN statistical bulletin 2008 and 2014. The multiple regression model was adopted for the study while the Ordinary Least Squares (OLS) estimation technique was employed in the analysis via STATA 11.0 econometric software. The diagnostic test result showed that all the variables were stationary after first differencing. The regression analysis result showed that microfinance bank loans and advances had significant impact on industrial output in Nigeria as 1% increase in microfinance bank loana and advances brought about 0.25% increase in industrial output during the period under review. It also, indicated that government expenditure on health had significant impact on industrial output in Nigeria as 1% increase in microfinance bank loans and advances led to 0.51% increase in industrial output during the period under review. In the light of these findings, the study recommends that the Nigerian government should enforce policies that will reduce the cost of borrowing from microfinance banks and address institutional and infrastructural challenges facing these microfinance banks in Nigeria.

Item Type:	Article
Subjects:	H Social Sciences > H Social Sciences (General) L Education > L Education (General)
Divisions:	Faculty of Management and Social Sciences
Depositing User:	GOUNI ICT
Date Deposited:	11 May 2018 13:57
Last Modified:	11 May 2018 13:57
URI:	http://eprints.gouni.edu.ng/id/eprint/47

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