Causality between Financial Deepening and Economic Growth in Nigeria: Evidence from a Bootstrap Rolling Window Approach

Aye, Goodness C.

doi:10.7763/joebm.2015.v3.288

Cited by 20 publications

(14 citation statements)

References 32 publications

(43 reference statements)

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“…The causal relationship between the financial inclusion and agricultural sector output in Nigeria has more indication for independent causality hypothesis. This is in conformity with the conclusion of Demetriades and Hussein (1996), Obafemi et al (2016) and Aye (2015). Though it does not agree with the a priori expectation but it does solidify the result of Error Correction Model (ECM) which revealed that DR, PLR, ACGSF, DDR and PLSE with P-value of 0.2717, 0.0927, 0.6080, 0.4361 and 0.0565 respectively do not have any significant effect on agricultural sector output in Nigeria within the period of study.…”

Section: Discussion Of Resultssupporting

confidence: 93%

Causality between Financial Inclusion and Agricultural Sector Output in Nigeria

Okuma

Nwoko

Elugom

et al. 2019

International Journal of Asian Social Science

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Financial inclusionPrime lending rate Deposit rate Agricultural credit guarantee Scheme fund Demand deposit from rural areas and deposit money bank loan to small scale enterprises as a percentage of total loan. This study examines the causality between financial inclusion and Nigeria's agricultural sector output (AOG). Ex-post facto research design was used and the annual time series data for various years were obtained from the Central Bank of Nigeria's (CBN) Statistical Bulletin. The Unit Root Test, Engle -Granger Co-integration Test, Error correction Model (ECM) Test and Granger Causality Tests were used to analyse the data. Financial inclusion was proxied by the prime lending rate, the deposit rate, the agricultural credit guarantee scheme fund, the demand for deposits from rural areas and the deposits of bank loans to small scale enterprises as a percentage of total loan. The results revealed that financial inclusion explains 41% of the changes in the Nigerian agricultural sector output. Prob. (F-statistics) co-efficient of 0.070531 proved that the explanatory variables have an insignificant effect on the dependent variable and Granger Causality Test showed more support for the non-existence of a causal relationship between the variables of explanatory variables and the dependent variables. Hence, the study recommends that the agricultural and financial sectors operators be sensitized on the benefits of their services to each other through symposiums, lectures, seminars and workshops. The two sectors should be encouraged to depend on each other with the agricultural sector relying more on the services of conventional financial institutions than on unorganized or traditional financial bodies. Financial institutions should also concentrate more on rendering services to the agricultural sector.Contribution/ Originality: This study examines the causality between financial inclusion and the agricultural sector output in Nigeria (AOG).

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Section: Discussion Of Resultssupporting

confidence: 93%

Causality between Financial Inclusion and Agricultural Sector Output in Nigeria

Okuma

Nwoko

Elugom

et al. 2019

International Journal of Asian Social Science

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“…The implication therefore is that the rolling window subsample Granger causality test is more suitable to investigate the time-varying Granger causal relationship between DEF and GDP. Following the works of Pesaran and Timmermann (2005) and Aye (2015), the study chose a rolling window with a fixed size of 15. From Figure 1, we observe from the estimated bootstrapped p-values which tests the null hypothesis that GDP does not Granger cause DEF is rejected at a statistical significance of 10% in the 1983-1987,1995-1996 and 2005 sub-sample periods.…”

Section: Resultsmentioning

confidence: 99%

Does the environmental Kuznets curve for deforestation exist for Ghana? Evidence from the bootstrap rolling window Granger causality test approach

Minlah

Zhang

Ganyoh³

et al. 2021

FER

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PurposeThis study investigates the existence of the environmental Kuznets curve (EKC) for deforestation for Ghana over the 1962–2018 the time period.Design/methodology/approachThe study employs a time-varying approach, the bootstrap rolling window Granger causality test to achieve its set objectives.FindingsThe results from our study reveals an inverted “N” shape EKC for deforestation, implying that deforestation will initially decrease with increases in economic growth up to a certain income threshold and increases with further increases in economic growth beyond this income threshold up to a higher income threshold and then decrease with further increases in economic beyond the higher income threshold.Practical implicationsThe results from the study project show that over time economic growth can serve as a natural panacea to cure and mitigate the ills of deforestation that have plagued Ghana's forests over the years.Social implicationsThe results further highlight the important role of strong institutions in fighting the deforestation menace.Originality/valueThe originality of this study lies in its methodology which allows for feedback from deforestation to the economy. This is in contrast to earlier studies on the EKC for deforestation which allowed causality only from deforestation to the economy.

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“…Aye [21] investigated the role of financial development on economic growth in Nigeria. Since a causal link may evolve over time, a bootstrap rolling window approach was used to account for potential time variation in the relationship with annual Nigerian data on money supply as a ratio of nominal GDP and real GDP per capita from 1961-2012.…”

Section: Relevant Literature Reviewmentioning

confidence: 99%

Effect of Financial Deepening on Economic Growth in Nigeria: A Time Series Appraisal (1986-2018)

Nwakobi

Oleka

Ananwude

2019

AJARR

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The influence of financial deepening on the economic growth of any nation cannot be underestimated. To this end, the study evaluated the effect of financial deepening on economic growth in Nigeria over a period of thirty three (33) years: 1986 to 2018. Data were collected from statistical bulletins of the Central Bank of Nigeria (CBN) and factbooks of the Nigerian Stock Exchange (NSE). The model estimation followed the Auto-regressive Distributive Lag (ARDL) approach with the effect estimated in line with the Granger Causality analysis. We found that economic growth in Nigeria is not affected by financial deepening. The study also stated that the level of growth in the economy is what influences the level of development in the banking sector. Nwakobi et al.; AJARR, 7(3): 1-9, 2019; Article no.AJARR.52016 2 and the capital markets to help in the efficient and effective mobilization of resources to accelerate the growth of the Nigerian economy. The insurance sector should not be left out in this regard even though citizens seem not to embrace the need for insurance policies. Impediments to the competition in the banking, insurance and capital market activities should be removed by strict legislation in line with international best practices and participants in the markets be protected as well. Original Research Article

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Causality between Financial Deepening and Economic Growth in Nigeria: Evidence from a Bootstrap Rolling Window Approach

Cited by 20 publications

References 32 publications

Causality between Financial Inclusion and Agricultural Sector Output in Nigeria

Causality between Financial Inclusion and Agricultural Sector Output in Nigeria

Does the environmental Kuznets curve for deforestation exist for Ghana? Evidence from the bootstrap rolling window Granger causality test approach

Effect of Financial Deepening on Economic Growth in Nigeria: A Time Series Appraisal (1986-2018)

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