Financial Deepening Implications for Macro-economic Volatility and Economic Growth in Nigeria, A Multivariate Approach

Anuli Regina Ogbuagu; Dennis Brown Ewubare

doi:doi:10.11648/j.ijefm.20170501.16

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Financial Deepening Implications for Macro-economic Volatility and Economic Growth in Nigeria, A Multivariate Approach

Anuli Regina Ogbuagu, Dennis Brown Ewubare

Published in International Journal of Economics, Finance and Management Sciences (Volume 5, Issue 1)

Received: 15 November 2016 Accepted: 1 December 2016 Published: 12 January 2017

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Abstract

This paper investigates the relationship between financial depth, macroeconomic volatility, and economic growth in Nigeria using a general model of error correction and causality model with time series sourced from Central Bank of Nigeria Bulletin 2012. The result shows a long-run impact of financial deepening on exchange rate volatility and economic growth while the error correction term indicates that there is no long-run impact of financial depth on growth volatility. On one hand, there is no short run impact of financial depth on exchange rate and growth volatility though most of the financial deepening variables show signs of dampening the volatility of exchange rate and growth. On the other hand, the error correction result suggests that there is a long-run and short-run impact of financial deepening on economic growth. The causality result showed no causality between financial deepening variable, economic growth, and growth volatility but a unidirectional causality between exchange rate volatility, stock traded, stock market capitalization, and broad money. We therefore, suggest that government and policy makers to embrace policies that will deepen financial services in Nigeria.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 5, Issue 1)
DOI	10.11648/j.ijefm.20170501.16
Page(s)	66-80
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Financial Deepening, Macroeconomic Volatility, Economic Growth, Exchange Rate, Error Correction, Causality

References

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APA Style

Anuli Regina Ogbuagu, Dennis Brown Ewubare. (2017). Financial Deepening Implications for Macro-economic Volatility and Economic Growth in Nigeria, A Multivariate Approach. International Journal of Economics, Finance and Management Sciences, 5(1), 66-80. https://doi.org/10.11648/j.ijefm.20170501.16

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ACS Style

Anuli Regina Ogbuagu; Dennis Brown Ewubare. Financial Deepening Implications for Macro-economic Volatility and Economic Growth in Nigeria, A Multivariate Approach. Int. J. Econ. Finance Manag. Sci. 2017, 5(1), 66-80. doi: 10.11648/j.ijefm.20170501.16

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AMA Style

Anuli Regina Ogbuagu, Dennis Brown Ewubare. Financial Deepening Implications for Macro-economic Volatility and Economic Growth in Nigeria, A Multivariate Approach. Int J Econ Finance Manag Sci. 2017;5(1):66-80. doi: 10.11648/j.ijefm.20170501.16

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@article{10.11648/j.ijefm.20170501.16,
  author = {Anuli Regina Ogbuagu and Dennis Brown Ewubare},
  title = {Financial Deepening Implications for Macro-economic Volatility and Economic Growth in Nigeria, A Multivariate Approach},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {5},
  number = {1},
  pages = {66-80},
  doi = {10.11648/j.ijefm.20170501.16},
  url = {https://doi.org/10.11648/j.ijefm.20170501.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20170501.16},
  abstract = {This paper investigates the relationship between financial depth, macroeconomic volatility, and economic growth in Nigeria using a general model of error correction and causality model with time series sourced from Central Bank of Nigeria Bulletin 2012. The result shows a long-run impact of financial deepening on exchange rate volatility and economic growth while the error correction term indicates that there is no long-run impact of financial depth on growth volatility. On one hand, there is no short run impact of financial depth on exchange rate and growth volatility though most of the financial deepening variables show signs of dampening the volatility of exchange rate and growth. On the other hand, the error correction result suggests that there is a long-run and short-run impact of financial deepening on economic growth. The causality result showed no causality between financial deepening variable, economic growth, and growth volatility but a unidirectional causality between exchange rate volatility, stock traded, stock market capitalization, and broad money. We therefore, suggest that government and policy makers to embrace policies that will deepen financial services in Nigeria.},
 year = {2017}
}

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TY  - JOUR
T1  - Financial Deepening Implications for Macro-economic Volatility and Economic Growth in Nigeria, A Multivariate Approach
AU  - Anuli Regina Ogbuagu
AU  - Dennis Brown Ewubare
Y1  - 2017/01/12
PY  - 2017
N1  - https://doi.org/10.11648/j.ijefm.20170501.16
DO  - 10.11648/j.ijefm.20170501.16
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 66
EP  - 80
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20170501.16
AB  - This paper investigates the relationship between financial depth, macroeconomic volatility, and economic growth in Nigeria using a general model of error correction and causality model with time series sourced from Central Bank of Nigeria Bulletin 2012. The result shows a long-run impact of financial deepening on exchange rate volatility and economic growth while the error correction term indicates that there is no long-run impact of financial depth on growth volatility. On one hand, there is no short run impact of financial depth on exchange rate and growth volatility though most of the financial deepening variables show signs of dampening the volatility of exchange rate and growth. On the other hand, the error correction result suggests that there is a long-run and short-run impact of financial deepening on economic growth. The causality result showed no causality between financial deepening variable, economic growth, and growth volatility but a unidirectional causality between exchange rate volatility, stock traded, stock market capitalization, and broad money. We therefore, suggest that government and policy makers to embrace policies that will deepen financial services in Nigeria.
VL  - 5
IS  - 1
ER  -

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Author Information

Anuli Regina Ogbuagu

Department of Economics and Developmental Studies, Federal University, Ndufu –Alike Ikwo, Nigeria
Dennis Brown Ewubare

Department of Agriculture and Applied Economics/Ext, Rivers State University of Science and Technology, Port Harcourt, Nigeria

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APA Style

Anuli Regina Ogbuagu, Dennis Brown Ewubare. (2017). Financial Deepening Implications for Macro-economic Volatility and Economic Growth in Nigeria, A Multivariate Approach. International Journal of Economics, Finance and Management Sciences, 5(1), 66-80. https://doi.org/10.11648/j.ijefm.20170501.16

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ACS Style

Anuli Regina Ogbuagu; Dennis Brown Ewubare. Financial Deepening Implications for Macro-economic Volatility and Economic Growth in Nigeria, A Multivariate Approach. Int. J. Econ. Finance Manag. Sci. 2017, 5(1), 66-80. doi: 10.11648/j.ijefm.20170501.16

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AMA Style

Anuli Regina Ogbuagu, Dennis Brown Ewubare. Financial Deepening Implications for Macro-economic Volatility and Economic Growth in Nigeria, A Multivariate Approach. Int J Econ Finance Manag Sci. 2017;5(1):66-80. doi: 10.11648/j.ijefm.20170501.16

Copy | Download

@article{10.11648/j.ijefm.20170501.16,
  author = {Anuli Regina Ogbuagu and Dennis Brown Ewubare},
  title = {Financial Deepening Implications for Macro-economic Volatility and Economic Growth in Nigeria, A Multivariate Approach},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {5},
  number = {1},
  pages = {66-80},
  doi = {10.11648/j.ijefm.20170501.16},
  url = {https://doi.org/10.11648/j.ijefm.20170501.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20170501.16},
  abstract = {This paper investigates the relationship between financial depth, macroeconomic volatility, and economic growth in Nigeria using a general model of error correction and causality model with time series sourced from Central Bank of Nigeria Bulletin 2012. The result shows a long-run impact of financial deepening on exchange rate volatility and economic growth while the error correction term indicates that there is no long-run impact of financial depth on growth volatility. On one hand, there is no short run impact of financial depth on exchange rate and growth volatility though most of the financial deepening variables show signs of dampening the volatility of exchange rate and growth. On the other hand, the error correction result suggests that there is a long-run and short-run impact of financial deepening on economic growth. The causality result showed no causality between financial deepening variable, economic growth, and growth volatility but a unidirectional causality between exchange rate volatility, stock traded, stock market capitalization, and broad money. We therefore, suggest that government and policy makers to embrace policies that will deepen financial services in Nigeria.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Financial Deepening Implications for Macro-economic Volatility and Economic Growth in Nigeria, A Multivariate Approach
AU  - Anuli Regina Ogbuagu
AU  - Dennis Brown Ewubare
Y1  - 2017/01/12
PY  - 2017
N1  - https://doi.org/10.11648/j.ijefm.20170501.16
DO  - 10.11648/j.ijefm.20170501.16
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 66
EP  - 80
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20170501.16
AB  - This paper investigates the relationship between financial depth, macroeconomic volatility, and economic growth in Nigeria using a general model of error correction and causality model with time series sourced from Central Bank of Nigeria Bulletin 2012. The result shows a long-run impact of financial deepening on exchange rate volatility and economic growth while the error correction term indicates that there is no long-run impact of financial depth on growth volatility. On one hand, there is no short run impact of financial depth on exchange rate and growth volatility though most of the financial deepening variables show signs of dampening the volatility of exchange rate and growth. On the other hand, the error correction result suggests that there is a long-run and short-run impact of financial deepening on economic growth. The causality result showed no causality between financial deepening variable, economic growth, and growth volatility but a unidirectional causality between exchange rate volatility, stock traded, stock market capitalization, and broad money. We therefore, suggest that government and policy makers to embrace policies that will deepen financial services in Nigeria.
VL  - 5
IS  - 1
ER  -

Copy | Download