Journal of Scientific Papers

ECONOMICS & SOCIOLOGY


© CSR, 2008-2015
ISSN 2071-789X

1.39
2017CiteScore
 
88th percentile
Powered by  Scopus



Directory of Open Access Journals (DOAJ)


Strike Plagiarism

Partners
  • General Founder and Publisher:

     
    Centre of Sociological Research

     

  • Publishing Partners:

     
     
    University of Szczecin (Poland)


    Mykolas Romeris University (Lithuania)

     

     
     
    Alexander Dubcek University of Trencín, Faculty of Social and Economic Relations (Slovak Republic)



     
    University of Entrepreneurship and Law, (Czech Republic)



      

     

  • Membership:


    American Sociological Association


    European Sociological Association


    World Economics Association (WEA)

     


    CrossRef

     


The effects of financial development and trade openness on Nigeria‘s dynamic growth

Vol. 11, No 4, 2018

Muhammad Rabiu Danlami,

 

Department of Economics, Northwest University, Nigeria

The effects of financial development and trade openness on Nigeria‘s dynamic growth

 

Nanthakumar Loganathan,

 

Azman Hashim International Business School, Universiti Teknologi Malaysia, Malaysia


Dalia Streimikiene,

 

Lithuanian Institute of Agrarian Economics, V. Kudirkos g. 18, Vilnius 01113, Lithuania

E-mail: dalia@mail.lei.lt


Abbas Mardani,

 

Azman Hashim International Business School, Universiti Teknologi Malaysia, Malaysia


Asan Ali Golam Hassan,

 

Azman Hashim International Business School, Universiti Teknologi Malaysia, Malaysia

 


 


 

Abstract. This study attempts to investigate the short and long-run cointegration with the causal nexus between financial developments, trade and output growth in Nigeria. The financial instability index was generated using the residual based analysis to account for the effect of financial instability on growth. To examine the cointegration effects, the study used Autoregressive Distributed Lag (ARDL) model. The non-Granger causality analysis was also employed to determine the direction of causality between the variables. We found that financial instability retards growth significantly while financial liberalization indicates positive impact, but insignificant effect on growth. The study concluded that there is a long-run nexus between financial development and economic growth in Nigeria. We recommend that proactive measures need to be established to sustain economic growth in the country through enhancing productivity level, encouraging savings culture and economizing resources to promote capital accumulation.

 

Received: March, 2018

1st Revision: May, 2018

Accepted: November, 2018

 

DOI: 10.14254/2071-789X.2018/11-4/8

JEL ClassificationC52, G20, O16

Keywords: Financial development, Dynamic growth, Trade openness