This study evaluates both short-run and long-run impacts of credit financing facilities provided by commercial banks on crop production development in Nigeria from 1981 to 2020. The study adopts ex post-facto research design and obtains data on the study variables from Central Bank of Nigeria Statistical Bulletin and World Bank Development Indicators. Autoregressive Distributed Lag (ARDL) model approach was employed as an estimation technique. The outcome of the analysis produces significant negative effect of commercial banks loans and advances on crop production development in the short run. In the long run, however, commercial banks loans and advances and labour employment in agriculture sector exert significant positive impact on crop production development in Nigeria. The researchers conclude that commercial banks credit financing significantly increase contribution of agriculture to Nigeria gross domestic product in the long-run while it reduces crop productivity in the short-run.
<abstract> <p>This study examined the short-term and long-term relationship between credit financing by commercial banks and capacity utilization of the manufacturing sector in Nigeria. The study employed both classical Multiple Linear Regression (OLS-MLR) and the autoregressive distributed lag model (ARDL) to analyze data representing the period 1981–2020 relating to sectoral credit finance,labor employment,and capacity utilization from the <xref ref-type="bibr" rid="b6">Central Bank of Nigeria Statistical Bulletin (2020)</xref> and <xref ref-type="bibr" rid="b38">World Bank Development Indicators (2021)</xref>. Further,the two estimation procedures were performed within a classical endogenous Cobb-Douglas production function framework that takes technical change into consideration. The bounds test indicated no long-term relationship between bank financing and average capacity utilization of the manufacturing sector in Nigeria. However,the ARDL results revealed that bank financing exerts a positive but insignificant short-term impact on the average capacity utilization of the manufacturing sector in Nigeria. Consequently,the researchers affirm that credit financing by commercial banks in Nigeria has no significant impact on the capacity utilization of the country's manufacturing sector,in neither the short run nor the long run.</p> </abstract>
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