TAILIEUCHUNG - Financial Sector Development and Industrial

Literature abound justifying that industrialization is a pathway to economic development and growth. Whereas linkage between financial development and economic growth has long been a subject of intense scrutiny, not much has been done to examine the link between financial development and industrial growth. Using an aggregate production framework and autoregressive distributed lag (ARDL) cointegration technique for Nigerian time series data covering the period 1970 to 2009, the paper finds a cointegration relationship between financial sector development and industrial production. Both the long run and short run dynamic coefficients of financial sector development variables have negative and statistically significant impact on industrial production. Based on these research outcomes the following policy implications can be drawn: the most important task for government of Nigeria is to introduce further financial sector reforms to improve the efficiency of the domestic financial sector which is a pre-requisite for the achievement of industrial development. | Journal of Applied Finance Banking 2012 49-68 ISSN 1792-6580 print version 1792-6599 online Scienpress Ltd 2012 Financial Sector Development and Industrial Production in Nigeria 1970-2009 An ARDL Cointegration Approach Elijah Udoh1 and Uchechi R. Ogbuagu2 Abstract Literature abound justifying that industrialization is a pathway to economic development and growth. Whereas linkage between financial development and economic growth has long been a subject of intense scrutiny not much has been done to examine the link between financial development and industrial growth. Using an aggregate production framework and autoregressive distributed lag ARDL cointegration technique for Nigerian time series data covering the period 1970 to 2009 the paper finds a cointegration relationship between financial sector development and industrial production. Both the long run and short run dynamic coefficients of financial sector development variables have negative and statistically significant impact on industrial production. Based on these research outcomes the following policy implications can be drawn the most important task for government of Nigeria is to introduce further financial sector reforms to improve the efficiency of the domestic financial sector which is a pre-requisite for the achievement of industrial development. The inefficiency of the financial sector is responsible for the adverse impact on industrial production. Appropriate measures should be taken to eliminate the constraints and challenges facing small and medium scale enterprise SME funding schemes as these enterprises form the bedrock of the Nigerian industrial sector. Furthermore industrialization 1 Department of Economics University of Calabar PMB 1115 Calabar Nigeria e-mail udoea@. 2 Department of Economics University of Calabar PMB 1115 Calabar Nigeria e-mail uchechiogbuagu@ Article Info Received April 4 2012. Revised May 9 2012 Published online August 31 2012 50 Financial Sector

• Tài chính doanh nghiệp
• Financial development
• Industrial production
• ARDL cointegration approach
• Industrial production in Nigeria
• Financial development
• Thesis summary
• Financial development and economic growth
• Economic growth
• Policy implications for Vietnam
• National combined financial development index
• Foreign direct investment and financial development
• New insights threshold approach
• Foreign direct investment
• Determinants of financial development
• Political institutions
• Financial reforms
• Geographic determinants
• Carbon markets
• Financial institutions
• Financial structure
• Market based financial systems
• Bank based financial systems
• Rule of law
• Development of the national financial safety net
• Financial safety net
• The national financial safety net in Vietnam
• National financial safety net
• Building legal frameworks
• Strengthening members’ capacity
• General determinants
• Private investment
• Some stylized facts
• The potential determinants
• Empirical strategy
• Empirical results
• Economic openness
• Interest rate
• Predictors of financial development
• Ghana whilst size
• Information and communication Technology
• Energy consumption
• Financial development in Africa
• Communication technology
• Empirical analysis of shenzhen
• Financial development and economic
• Real economy
• Trade openness
• Saudi Arabia
• Linkage between financial development
• Endogenous growth theory
• Financial development on economic
• Lecture Product Design and Development
• Product design
• Product development
• Product development economics
• Product development cash flow
• Project financial analysis
• Income inequality
• Financial kuznets curve
• Pandemic Covid 19
• Short run relationships based
• Financial market expansion in Vietnam
• Generalized method of moments
• Economic development
• Panel data
• Least developed countries
• Relationship between financial development
• Asean countries
• Electricity consumption
• Financial system development
• Capital formation
• Economic growth induces trade diversification
• Belt and road countries
• Road economies
• Energy consumption nexus
• functioning
• financial system
• ong run economic
• fiscal policy
• Corporate Financial Structure
• Working Paper
• Financial Stability
• financial crisis
• Economic Cooperation and Development
• emerging market economy countries
• giáo trình đại học
• tài chính doanh nghiệp
• thị trường tài chính
• Tạp chí khoa học
• Addis Ababa action agenda
• Financing for development
• Sustainable development goals
• Financial sector plays