Financial Development, Export and Economic Growth in Nigeria

Abstract

This paper examines the relationship among Financial Development, Export and Economic growth in Nigeria. The ADF and PP test are used in checking the order of integration of the variables and Johasen co-integration methodology is employed to investigate the long run relationship among the variables. Time series data were collected between 1994 and 2013. The direction of causality between variables is tested by Granger causality test and Ordinary least square (OLS). Econometric techniques were used to estimate the model. Evidence from the study found that exports and transportation development has a positive significant effect and influence in economic growth. While financial development, international trade structure and energy sector has a negative effect on economic growth. The study recommends that government should continue to intensify its efforts in promoting confidence of the public on such sectors, transform energy sectors through adequate and effective regulation and supervision; the reforms in the financial sector should be sustained so as to be able to channel more resources for investment and productive purposes.