Real Sector Output and Financial Liberalisation in Nigeria

Anthony Orji, Ekene Aguegboh and Onyinye Anthony-Orji
Authors registered in the RePEc Author Service: Anthony Orji

Journal of Infrastructure Development, 2015, vol. 7, issue 2, 136-150

Abstract: This study investigates the impact of financial liberalisation on real sector output in Nigeria by adopting the Ordinary Least Square (OLS) modeling technique for the econometric analysis. Pre-estimation tests such as the Stationarity and Cointegration tests were also done. The results show that the variables of interest in the model are cointegrated and that financial liberalisation (proxied by private sector credit) has a negative impact on manufacturing sector, while it has a positive impact on agricultural sector. This implies that credit to private sector was diverted to some unproductive ventures, rather than productive activities. Furthermore, poor infrastructure, high level of corruption, political and economic instability and high cost fund were found to have constrained the contribution of private sector credit to economic development. On the other hand, its positive impact on agriculture shows that there is an improvement in the agricultural sector since the commencement of financial liberalisation. The study concludes that efforts should be geared towards militating against the socioeconomic cum institutional factors that constrained the contribution of private sector credit to manufacturing output growth in Nigeria within the period under review.

Keywords: Financial liberalisation; real sector; agricultural sector; manufacturing sector; Nigeria (search for similar items in EconPapers)
JEL-codes: E44 L16 N17 O13 O41 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (61)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0974930615609483 (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:sae:jouinf:v:7:y:2015:i:2:p:136-150

DOI: 10.1177/0974930615609483

Access Statistics for this article

More articles in Journal of Infrastructure Development from India Development Foundation
Bibliographic data for series maintained by SAGE Publications ().