This article re-examines the finance-growth nexus in China using principal components analysis and ARDL bounds testing approach to cointegration. The results suggest that principal components have an effective role in examining the links between growth and financial development and, that financial development fosters economic growth.

Finance-growth nexus in China revisited: New evidence from principal components and ARDL bounds tests

The foreign and domestic investments have a significant contribution towards economic development for developing and developed economies especially for underdeveloped economies. The primary objecti...

Effect of domestic and foreign private investment on economic growth of Pakistan

Banking and finance

Does the level of financial leasing matter in the impact of bank lending on economic growth: Evidence from the global market (2006–2016)

2 Olorunsola E. Olowofeso, Adeyemi A. Adeboye, Valli T. Adejo, Kufre J. Bassey 3 and Ochoche Abraham This paper investigates the relationship between credit to agriculture and agricultural output in Nigeria by means of nonlinear autoregressive distributed lag (NARDL) model using a time series data from 1992Q1 to 2015Q4. Results show no evidence of asymmetry in the impact of credit to output growth in the agricultural sector (positive and negative changes) in the short-run, but different equilibrium relationships exist in the long-run. The dynamic adjustments show that the cumulative agricultural output growth is mostly attracted by the impact of the positive changes in credit to agriculture with a lag of four quarters of the prediction horizon. This calls for the need for a policy on moratorium on credit administration to agricultural sector.

https://www.econstor.eu/bitstream/10419/191697/1/1021640603.pdf

Agricultural sector credit and output relationship in Nigeria: Evidence from nonlinear ARDL1

The study examined the impact of bank domestic credits on the economic growth of Nigeria Using time series Nigerian data for the period of thirty three (33) years (1980-2013), credit to private sector, credit to government sector and contingent liability were used as proxy for bank domestic credit while gross domestic product represents economic growth The augmented Dickey-Fuller unit root test results indicated that the data series achieved stationarity after first differencing at the order 1(1) The relative statistics of the estimated model shows that credit to the private sector (CPS) and Credit to the government sector (CGS) positively and significantly correlate with GDP in the short run The analysis revealed the existence of poor long run relationship between bank domestic credit indicators and gross domestic product in Nigeria This study recommends that the managers of the Nigeria economy should fashion out appropriate policies that will enhance the bi-directional flow of influence between the banking sector where investable funds are sourced and the real sector of the economy where goods and services are produced, and there should be efficient and effective utilization of borrowed funds in order to achieve the nominated objective of investment, productivity and economic growth

/pdf/bank-domestic-credits-and-economic-growth-nexus-in-nigeria-9ffi0hbczu.pdf

Bank Domestic Credits and Economic Growth Nexus in Nigeria (1980-2013)

The study model the relationship between financial intermediation functions of banks and economic growth in Nigeria using data spanning (1970-2014). Secondary data was collected from the CBN statistical bulletin and national bureau of Statistics. Credit to private sector (CPS), banks deposit liabilities (DLS), and money supply (MOS) were used as proxy for bank financial intermediation functions while gross domestic product represents economic growth. The augmented Dickey-Fuller unit root test results indicated that the data series achieved stationarity after first differencing at the order 1(1). The relative statistics of the estimated model shows that credit to the private sector (CPS) negatively and insignificantly correlate with GDP in the short run, bank deposit liabilities shows a positive relationship with GDP though statistical insignificant at 5% level. While money supply positively and significantly correlate with GDP at short run.  The analysis revealed the existence of a long run relationship between bank financial intermediation indicators and gross domestic product in Nigeria. The granger causality test results reveal that there exist unidirectional causality flowing from Gross domesticproduct to Credit to Private Sector (CPS). Bi-directional causality runs between Deposit Liabilities (DLS), Money Supply (MOS)and GDP. These suggest that growth in the volume of deposit liabilities could boost banks financial intermediation functions in the economy and exert a positive impact on level of productivity hence having a contagion effect on the output level of goods and services in the economy.  This study recommends that the managers of the Nigeria economy should fashion out appropriate policies that will enhance the bi-directional flow of influence between the banking sector where investable funds are sourced and the real sector of the economy where goods and services are produced, and there should be efficient and effective financial intermediation process in order to achieve the nominated objective of investment, productivity and economic growth. Keywords: Modeling, Banks Financial Intermediation, Gross Domestic Product, Nigeria

/pdf/modeling-financial-intermediation-functions-of-banks-theory-40jtec4v0f.pdf

Modeling Financial Intermediation Functions of Banks: Theory and Empirical Evidence from Nigeria

This paper examines the linkage between finance companies intermediation functions and economic growth in Nigeria. Using an annual time series data spanning the period of 1992 -2014 with the application of the estimation techniques of ordinary least square (OLS), co integration test, alongside granger causality test. The Global statistic results indicates that about 80% of the variations in GDP for the estimation period were captured by the explanatory variables. The relative statistic results showed evidence for strong and positive correlation between NLA and GDP in both short run and long run. Causality runs Bi-directionally between INV and GDP and Uni-directionally between NLA and GDP. The study conclude that financial intermediation functions of finance companies has a prominent role in determining the performance of the Nigeria economy. As such there should be an effective regulatory framework for finance companies operations in Nigeria with the view of improving financial intermediations services. It further recommends that there should be collaboration between finance companies and other financial institutions with the view of building a robust financial system in Nigeria. By ways of policy statement public awareness on the existence and function of finance companies be made to increase their patronage.

/pdf/the-intermediation-functions-of-finance-companies-and-u8190v6kkk.pdf

The Intermediation Functions of Finance Companies and Economic Growth: Issues, Theory and Empirical Evidence from Nigeria

This study is on foreign private investment and the developing economies. The study seeks to test the hypothesis that foreign private investment (FDI and FPI) has no impact on Nigeria economy within the periods under review. The secondary data which were obtained from the Central bank of Nigeria Statistical Bulletin (2010) were used. The data was collected for a period of forty years (1970-2010). The sophisticated econometric tools of the vector auto-regressions (VAR), Johansen Co-integration, and Granger causality tests were employed in the analysis of the data. It was found that both FDI and FPI were positive at short-run though statistical insignificant with economic growth in Nigeria. While on long-run there existed a positive significant relationship between FDI, FPI and economic growth in Nigeria. This implies that a continuous increase in both FDI and FPI will propel economic growth of Nigeria. The study recommended that efforts to attract more foreign private investment should be undertaken by the Nigeria government as one of the way of boosting the Nigeria economy. Keywords: FDI, FPI, VAR, Johansen Co-integration, Nigeria

/pdf/foreign-private-investment-and-the-developing-economies-tojjc7jicw.pdf

Foreign Private Investment and the Developing Economies: Evidence from Nigeria

This paper briefly reviews and synthesizes the finance applications of game theory and behavioral finance. It demonstrated how game theoretic techniques have allowed insight into these puzzles with higher order beliefs, informational cascades and heterogeneous prior beliefs. It has also helped in resolving the apparent empirical anomalies in traditional finance theories using the two building blocks of behavioral finance.

Igbanibo Dumini Solomon

Papers

Bank Domestic Credits and Economic Growth Nexus in Nigeria (1980-2013)

Modeling Financial Intermediation Functions of Banks: Theory and Empirical Evidence from Nigeria

The Intermediation Functions of Finance Companies and Economic Growth: Issues, Theory and Empirical Evidence from Nigeria

Foreign Private Investment and the Developing Economies: Evidence from Nigeria

Finance Applications Of Game Theory And Behavioral Finance