IMPACT OF DEPOSIT MONEY BANK CREDITS ON PERFORMANCE OF SMALL AND MEDIUM SCALE INDUSTRIES IN NIGERIA (1980-2014)

Uwakwe, Queendaline C. and Duru, A.N and Nnadi, Sunday (2020) IMPACT OF DEPOSIT MONEY BANK CREDITS ON PERFORMANCE OF SMALL AND MEDIUM SCALE INDUSTRIES IN NIGERIA (1980-2014). Advance Journal of Economics and Marketing Research, 5 (10). pp. 39-57. ISSN 2271 – 6239

[img] Text
IMPACT-OF-DEPOSIT-MONEY-BANK-CREDITS-ON-PERFORMANCE-OF-SMALL-AND-MEDIUM-SCALE-INDUSTRIES-IN-NIGERIA-1980-2014 (1)_organized.pdf
Download (785kB)

Abstract

The study evaluated the impact of Deposit Money Bank Credits (DMBC) on the performance of Small and Medium Scale Industries (SMEI) in Nigeria using annual data from 1980 to 2014. The objective of the study is to examine the impact of deposit money bank credit on the performance of small and medium scale industries in Nigeria. Second, To determine the impact of interest rate on the output of small and medium scale industries in Nigeria. Autoregressive Distributive Lag (ARDL) model was employ given the nature of chosen variables to analyze the impact of deposit money bank credit on the performance of SMIs in Nigeria both in the long-run and the short- run. The result revealed that DMBC impacts positively on the performance of SMIs in Nigeria both in the long-run and short-run though has more explanatory power in the long-run. Interest rate has no statistically significant impact on SMIs growth in the shortrun but exert a rather weak influence on the SMIs growth in the long-run. The speed at which the SMEs growth adjust to its long-run equilibrium is quite weak as the result shows the speed of convergence to be 0.0120570, which implies that about 1.21% disequilibrium is being corrected in the next period. Savings is also has a statistically significant impact on the SMIs growth in both the short-run and long-run. From the result and investigation it is obvious that financing is critical to the growth of SMIs and hence the study recommends that credit should be provided to SMIs through the use of monetary policy tools of the central bank of Nigeria (CBN). Also, there is the need to monitor loans that are advanced to these enterprises to ensure that such loans are used for what they are meant for. Loans at a reduced interest rate can also spur the growth of SMIs since that will reduce the cost incurred accessing funds for investment.

Item Type: Article
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Faculty of Arts > Faculty of Law > Faculty of Management and Social Sciences > Faculty of Education
Depositing User: Uchenna Eneogwe
Date Deposited: 05 Aug 2025 12:06
Last Modified: 05 Aug 2025 12:06
URI: http://eprints.gouni.edu.ng/id/eprint/4995

Actions (login required)

View Item View Item
GOUNI Repository is powered by EPrints 3 which is developed by the School of Electronics and Computer Science at the University of Southampton. More information and software credits.