Economic analysis of growth finance and liquid liabilities in Nigeria
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DOIhttp://dx.doi.org/10.21511/imfi.17(3).2020.29
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Article InfoVolume 17 2020, Issue #3, pp. 387-396
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Liquid liabilities are required to develop key sectors that drive the Nigerian economy by ensuring that loans are available for investment purposes. However, controversies concerning the effectiveness of growth finance in fostering liquid liabilities in Nigeria exist. Thus, this study examines the relationship between growth finance and liquid liabilities in Nigeria, with insight into Nigeria’s real sector. In achieving its objective, the study utilizes secondary data from the annual reports of the Central Bank of Nigeria (1980–2018). The study finds that gross domestic savings significantly drive liquid liabilities in the long run compared to other growth finance indicators, which include stock market development and remittance inflows. Therefore, the study recommends that to improve liquid liability, gross domestic savings, among other growth finance indicators, should be harnessed as a tool to efficiently influence liquid liabilities in the Nigerian economy. The study concludes that attention should be paid to development policies that drive all stakeholders’ gross domestic savings.
- Keywords
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JEL Classification (Paper profile tab)C54, F43, O11
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References43
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Tables6
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Figures0
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- Table 1. Description of variables
- Table 2. Stationarity test
- Table 3. ARDL bounds test for liquid liabilities and growth finance indicators
- Table 4. ARDL model for liquid liabilities and finance for growth indicators
- Table 5. Error Correction Model (ECM) for liquid liabilities and growth finance indicators
- Table 6. Long-run model for liquid liabilities and finance for growth indicators
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