This study examined the impact of money market reforms on economic growth of Nigeria. The objectives were to find out how reform of the market since 1990 has impacted on Nigeria's GDP through money market transactions, treasury bill rate and treasury bill outstanding. Quasi experimental design was adopted. Data were collected through CBN Statistical Bulletin covering the period 1990-2017. Statistical tools adopted include unit root test, OLS, cointegration and variance decomposition. Findings showed that the variables are non-stationary but integrated in order 1 level. The cointegration result showed that all the variables are co-integrated. The OLS result suggests that money market value has positive and significant effect on GDP while treasury bill outstanding has positive but insignificant effect on GDP. However, treasury bill rate has negative and significant effect on GDP. The F-statistics suggests that all the money market proxies jointly impacted of GDP, an implication that money market is a viable financial market in Nigeria. Moreover, the variance decomposition showed that GDP has a decreasing variance with money market value and treasury bill rate but an increasing variance with treasury bill outstanding. The variance impulse showed that GDP responds to the activities or movement in money market value and treasury bill rate. In conclusion, it was observed that money market reform has helped boost the effect of the market on Nigeria's economic growth. The study recommends constant reform of the market. It urges the authorities of the market to deepen the market with more trading instruments.
This study assessed insurance premium and Nigeria's economic performance. It aimed at finding out the relationship insurance premium, investment and assets have with Nigeria's GDP. Descriptive statistics, Augmented Dickey Fuller Unit Root Test, Johansen cointegration, OLS regression, variance decomposition and granger causality tests were adopted. Findings revealed that all the series are significant and but not normally distributed. The correlation matrix shows that there is high and positive correlation between the independent variables. The results of the unit root tests using Augmented Dickey-Fuller test show that all the variables do not have unit roots (that is, are stationary) at 5% in their first differences. The Johansen co-integration result confirms that there is long run relationship between insurance activities and economic growth in Nigeria. The OLS result suggests that 93.11 percent of the total variation found in GDP is explained by the presence of total assets, investments and premium of the insurance industry sector while the F-Statistics has a value of 163.1080 which is highly significant at 5% confidence level implying that insurance industry play significant role in development of the Nigerian economy. The Variance Decomposition for 10 period indicates that Insurance sector investment is more significant than premium for most of the periods. However, since premium represents revenue for the insurance industry it has positive impact on GDP for all the periods while GDP responds positively. This granger causality result shows that there is granger causality relationship between insurance premium, investment and assets have granger causality with GDP. From the findings, it recommends that insurance business authorities should review its reform policy and ensure that policies that will strengthen premium mobilization in Nigeria are put in place. Insurance companies need to invest more of their funds in productive sectors of the economy.
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