Economics at your fingertips  

An Empirical Investigation into the Relationship between Financial Sector Development and Unemployment in Nigeria

Haruna Mohammed Aliero, Saifullahi Sani Ibrahim () and Mukhtar Shuaibu
Additional contact information
Haruna Mohammed Aliero: Department of Economics, Faculty of Social Sciences, Usmanu Danfodiyo University Sokoto, Nigeria
Mukhtar Shuaibu: Department of Economics, Faculty of Social Sciences, Usmanu Danfodiyo University Sokoto, Nigeria

Asian Economic and Financial Review, 2013, vol. 3, issue 10, 1361-1370

Abstract: Financial sector development has been identified by financial economists as a veritable way of empowering the poor thereby paving the way for enabling them to become employed and possibly serve as economic agents of change. This study empirically investigates the relationship between financial sector development and unemployment in Nigeria. A time series data was generated from 1980 to 2011 period. Auto Regressive Distributed Lag (ARDL) Bound Testing technique for cointegration was applied to estimate the long run relationship. The study found that there has been persistent unemployment in Nigeria, while formal credit allocation in rural areas has both short run and long run effect of reducing unemployment. Also found in this study is that expansionary monetary measures did not fuel inflation significantly. The study therefore recommends that monetary authority should strengthen and deepen financial services industry, particularly, Deposit Money Banks, to provide necessary financial support to the teeming unemployed youth in the country.

Keywords: Financial development; Financial system; Nigeria; Youth unemployment; Error correction model. (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link) (application/pdf) (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:

Access Statistics for this article

Asian Economic and Financial Review is currently edited by Dr. Qazi Muhammad Adnan Hye

More articles in Asian Economic and Financial Review from Asian Economic and Social Society 2637 E Atlantic Blvd #43110 Pompano Beach, FL 33062, USA.
Bibliographic data for series maintained by Chan Hoi Yan ().

Page updated 2019-09-21
Handle: RePEc:asi:aeafrj:2013:p:1361-1370