Financial Deepening and Sustained Economic Growth in Nigeria: What Nonlinear Models Reveal

Authors

  • Ebere Ume Kalu University of Nigeria, Nsukka
  • Chinwe R. Okoyeuzu University of Nigeria, Nsukka
  • Elizabeth U. Okechukwu Enugu State University of Science and Technology, Enugu State
  • Wilfred Isioma Ukpere Department of Industrial Psychology and People Management, Johannesburg Business School, College of Business & Economic, University of Johannesburg

Keywords:

ARDL, NARDL, Financial Deepening, and Economic Growth.

Abstract

Motivated by the desire to expose a possible nonlinearity and non-proportionality in linking financial deepening and economic growth, we investigated the finance-growth nexus from a linear and nonlinear perspective using dataset from Nigeria for 1981: Q1 to 2017: Q4. Using the Autoregressive Distributed Lag (ARDL) and Nonlinear Autoregressive distributed Lag (NARDL) models, and it was found that economic growth tends to adjust nonlinearly to financial deepening than it does linearly. This is expected to guide policy makers towards ensuring that the linearity and nonlinearity polarity of the finance-growth nexus are always factored-in while formulating policies relative to driving sustained growth through financial deepening.

Downloads

Published

2019-12-31

How to Cite

Kalu, E. U., Okoyeuzu, C. R., Okechukwu, E. U., & Ukpere, W. I. (2019). Financial Deepening and Sustained Economic Growth in Nigeria: What Nonlinear Models Reveal. Journal of Reviews on Global Economics, 8, 1320–1328. Retrieved from https://lifescienceglobalca.com/index.php/jrge/article/view/6323

Issue

Vol. 8 (2019)

Section

Special Issue - Africa’s Economic Development Agenda and Sustainable Growth

License

Policy for Journals/Articles with Open Access

Authors who publish with this journal agree to the following terms:

  • Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

  • Authors are permitted and encouraged to post links to their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work

Policy for Journals / Manuscript with Paid Access

Authors who publish with this journal agree to the following terms:

  • Publisher retain copyright .

  • Authors are permitted and encouraged to post links to their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work .