Theoretical and Applied Economics
No. 4 / 2023 (637), Winter
Revisiting the finance-growth nexus in Nigeria using frequency domain approach
Félix Houphouët-Boigny University, Abidjan, Côte d’Ivoire
Abstract. In this paper, we reexamine the causal relationship between financial development and economic growth in Nigeria using annual data over the period 1960-2020. we employ the novel frequency domain causality test based on Granger and Toda-Yamamoto causality tests to identify the direction of the causality in the short (temporary), medium (intermediate) and long-run (permanent). To this end, first, the paper takes advantage of the principal component analysis (PCA) to construct a financial development index using three standard ratios introduced in the literature to measure financial development, namely the broad money stock, the domestic credit to private sector, and the domestic credit to private sector by banks, all expressed as a percentage of GDP. Then economic growth is captured by real GDP per capita. The empirical results suggest a unidirectional permanent causal relationship running from economic growth to financial development.
Keywords: Financial development, Economic growth, Frequency domain causality test, Nigeria.
Contents
- Analyzing the financial performance of Turkish bank groups
during the Covid-19 pandemic with the TOPSIS method
Levent SEZAL
- Mapping circular pathways:
a bibliometric exploration and Multilinear Regression Model
of Romania's circular economy
Ionuț NICA
Maria-Luiza CIOCAN
- Tax Revenue and the informal sector in developing countries:
the case of Côte d’Ivoire
Paul Vivien OYIBO
Yaya KEHO
Friedrich SCHNEIDER
- What drives the oversubscription of IPO’s:
evidence from Indian Stock Market
Dr. Aniruddha DAS
Dr. Amith Vikram MEGARAVALLI
Dr. A. Sarath BABU
- A sustainable and resilient socio-economic paradigm
through corporate governance intervention
Dumitru Alexandru BODISLAV
Raluca Iuliana GEORGESCU
- ARIMA forecast of Nigerian inflation rates
with Covid-19 pandemic event in focus
Emmanuel Akingbola ODUNTAN
Olusola Osho AJAYI
- Analysis of the asymmetric relationship between stock markets
and environmental quality: an analysis on Turkey
Mustafa UYSAL
Mustafa ÇAYIR
- Entrepreneurial knowledge
and motivation's influence on entrepreneurial intentions:
the role of entrepreneurial self-efficacy
Arpita GOYAL
MANSI
Shubham PANDEY
- Social and economic aspects
of internal circular migration flows
Yılmaz Onur ARİ
- Are employees cyber loafing while working from home?
Influence of demographic and organizational factors
on cyber loafing behaviour
Saji GEORGE
Dr. Johney JOHNSON
Dr. Karthika DEVAN
- Lobbying in Romania
between utopia and legislative framework
Ioana Andreea DOGEANU
- The effects of financial inclusion on entrepreneurship
in SSA and the role of institutions
Lewis-Landry GAKPA
- The effect of central bank independence on financial stability
in developed countries:
evidence from the Fourier procedure
Canan SANCAR
Yusuf Ekrem AKBAŞ
Esra CAN
Beyhan KILINÇER
- Decoding financial literacy's mediating role:
analyzing the influence of biopsychosocial indicators
on financial satisfaction and risk tolerance
among millennial investors
Shakira MUKHTAR
Anisa JAN
- The Asian Stock Market’s reaction to Covid outbreak:
an empirical Insights from ARDL approach
Dr. Neha SETH
Deepti SINGH
- The economic evolution of globalization
Carmen Elena SPIRIDON
- Testing behavior of defense expenditures
in the NATO Countries:
evidence from Fourier quantile unit root test
Yavuz ÖZEK
Tayfur BAYAT
Selim KAYHAN
- The relationship between google trends search
and energy commodity prices
Sakthivel SANTHOSHKUMAR
Murugesan SELVAM
Balasundram MANIAM