Impact of financial development on manufacturing output: The Nigerian evidence

Maxwell Ekor and Oluwatosin Adeniyi

MPRA Paper from University Library of Munich, Germany

Abstract: This study examined the influence of financial deepening on manufacturing output in Nigeria. Using the Vector Autoregression (VAR) based Johansen cointegration technique and an Ordinary Least Square (OLS) estimator on annual data spanning 1970 to 2010, we found insignificant coefficients for credit to the manufacturing sector, banking efficiency and the non-oil trade balance. This suggests a fundamental disconnect between the real and financial sectors of the Nigerian economy. Policymakers should therefore innovate with productivity enhancing reforms which are better tailored to the needs of the manufacturing sector. This should work to boost growth prospects for the aggregate economy.

Keywords: Financial deepening; Credit; Manufacturing; Vector Autoregression (search for similar items in EconPapers)
JEL-codes: E44 E51 G21 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (3)

Published in Economics Bulletin 3.32(2012): pp. 2638-2645

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Journal Article: Impact of financial development on manufacturing output: The Nigerian evidence (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:107839

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