Abstract
The objective of the study is to examine empirically the impact of financial intermediation on the real sector of the Nigerian economy with the aim of determining the impact of financial intermediation on the real sector growth. Both theoretical and econometric analysis are used in this study to examine the impact of financial intermediation on the real sector growth; using real GDP growth rate as the dependent variable and credits to private sector (CPS), average manufacturing capacity utilization (AMCU) and inflation rate (INFR) as independent variables from 1980-2012. The study employs time-series methods of unit root test, co-integration test and vector error correction (VEC) model. The study establishes that credit to private sector contributes significantly to real sector growth in Nigeria. The study also establishes that both average manufacturing capacity utilization and inflation rate do exert any significant effect on real sector growth in Nigeria. The Adjusted R-squared value is 0.99. The study recommends that public policies to stimulate the supply of basic infrastructure, reward DMBs for providing large loans to private sector, improve security of lives and properties and discipline monetary and fiscal policies in order to enhance real sector growth.
This material content is developed to serve as a GUIDE for students to conduct academic research
IMPACT OF FINANCIAL INTERMEDIATION BY DEPOSIT MONEY BANKS ON THE REAL SECTOR OF THE NIGERIAN ECONOMY (1980 – 2012)
Project 4Topics Support Team Are Always (24/7) Online To Help You With Your Project
Chat Us on WhatsApp » 09132600555
DO YOU NEED CLARIFICATION? CALL OUR HELP DESK:
09132600555 (Country Code: +234)
YOU CAN REACH OUR SUPPORT TEAM VIA MAIL: [email protected]
09132600555 (Country Code: +234)