From Rural to Microfinance Banking: Contributions of Micro Credits to Nigeria¡¯s Economic Growth ¨C An ARDL Approach

Prince C. Nwakanma, Ikechukwu S. Nnamdi and Godfrey O. Omojefe

International Journal of Financial Research, 2014, vol. 5, issue 3, 73-85

Abstract: Given current emphasis on potentials of micro credits as a means of addressing poverty alleviation and improved economic growth especially in developing economies, this study seeks to evaluate the nature of long-run relationship and the direction of causality between economic growth and micro credits disbursed by private sector led micro finance institutions in Nigeria. Covering the period 1982 ¨C 2011 (30 years), the Autoregressive Distributed Lag (ARDL) technique was employed in analyzing the time series data. The study finds significant long-run relationship between Nigeria¡¯s economic growth and micro credits disbursed, while causality runs from economic growth to micro credits (unidirectional). Accordingly, increase in the quantum of micro credits as well as development of long tenured micro credit products are recommended as strategies to enhance the contributions of micro credits to Nigeria¡¯s economic growth.

Keywords: micro credits; active poor; community enterprise; causality; ARDL (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciedu.ca/journal/index.php/ijfr/article/view/4945/2899 (application/pdf)
http://www.sciedu.ca/journal/index.php/ijfr/article/view/4945 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jfr:ijfr11:v:5:y:2014:i:3:p:73-85

Access Statistics for this article

International Journal of Financial Research is currently edited by Gina Perry

More articles in International Journal of Financial Research from International Journal of Financial Research, Sciedu Press
Bibliographic data for series maintained by Gina Perry ().