The Relationship between Financial Development and Economic Growth in Nigeria: Linear and Non-Linear Approaches

Authors

  • Shehu El-Rasheed

DOI:

https://doi.org/10.2022/lje.v3i1.31

Keywords:

Finance, Economic Growth, ARDL, Non-Linear ARDL, Nigeria

Abstract

The paper re-examines the relationship between financial development and economic growth in Nigeria. Both conventional ARDL and the new Non-Linear ARDL approaches to cointegration were utilized over an annual data covering 1980 to 2016. The empirical result shows that relationship between financial development and economic growth is asymmetrical. The results further suggest that the current effort by government towards developing the economy as contained in the economic recovery plan (ERGP) needs to consider nonlinearities in modeling macroeconomic relationships.

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Published

2019-06-30

How to Cite

El-Rasheed, S. (2019). The Relationship between Financial Development and Economic Growth in Nigeria: Linear and Non-Linear Approaches. Lapai Journal of Economics, 3(1), 128–139. https://doi.org/10.2022/lje.v3i1.31

Issue

Vol. 3 No. 1: 2019

Section

Articles

License

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