Universal Journal of Accounting and Finance Vol. 9(4), pp. 667 - 677
DOI: 10.13189/ujaf.2021.090413
Reprint (PDF) (471Kb)


Financial Deepening and Economic Growth in Nigeria: ARDL and NARDL Techniques


Ben Etim Udoh 1, Akpan Ededem Jack 2, Abner Ishaku Prince 1, Kelvin-Iloafu Lovlyn Ekeowa 1, Victor Ndubuaku 3, Udo Emmanuel Samuel 2,*
1 Department of Management, University of Nigeria Enugu Campus, Nigeria
2 Department of Banking and Finance, University of Nigeria Enugu Campus, Nigeria
3 Federal College of Agriculture Ishiagu, Ebonyi State, Nigeria

ABSTRACT

Financial firms' services are considered germane to an economy's expansion universally. 2015-2016 economic and financial in Nigeria can be accredited to the hollowness of the financial firm contracting the economy by 2.06%, 63.7% market capitalization, and 67.2% in all share indexes losses. Prior empirical techniques focus primarily on finance-growth linear nexus. Which begs the question is the reported linear nexus a function of the linear assumption test power or earth evidence? The baseline ARDL and NARDL techniques are used in this research. To observe if there is a possibility of a non-linear association, for structural breaks, the Zivot and Andrews tests were used, as well as Granger causality to test for causality. From 1999Q1-2019Q4, quarterly data from the three arms of financial firms "insurance, banking, and stock market" were used. Findings revealed that economic growth adjusts non-linearly at a faster pace. A variety of macro-non-macroeconomic and financial factors can be implicated in the non-linear adjustment. A bi-directional link between the variables was revealed by causal nexus.

KEYWORDS
Financial Sector Deepening, Economic Growth, Nigeria, ARDL, NARDL

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Ben Etim Udoh , Akpan Ededem Jack , Abner Ishaku Prince , Kelvin-Iloafu Lovlyn Ekeowa , Victor Ndubuaku , Udo Emmanuel Samuel , "Financial Deepening and Economic Growth in Nigeria: ARDL and NARDL Techniques," Universal Journal of Accounting and Finance, Vol. 9, No. 4, pp. 667 - 677, 2021. DOI: 10.13189/ujaf.2021.090413.

(b). APA Format:
Ben Etim Udoh , Akpan Ededem Jack , Abner Ishaku Prince , Kelvin-Iloafu Lovlyn Ekeowa , Victor Ndubuaku , Udo Emmanuel Samuel (2021). Financial Deepening and Economic Growth in Nigeria: ARDL and NARDL Techniques. Universal Journal of Accounting and Finance, 9(4), 667 - 677. DOI: 10.13189/ujaf.2021.090413.