Financial Sector Reform and Economic Development in Nigeria

Asian Economic and Financial Review

article

Abiola Ayopo Babajide¹  Lawal Adedoyin Ishola²  Adetiloye Kehinde Adekunle¹  Bede Uzoma Achugamonu¹  Akinjare Victoria Bosede¹ 

[1] Department of Banking and Finance, Covenant University;Department of Accounting and Finance, Landmark University

关键词: Human development index;    Financial sector reform;    Vector error correction;    Inclusive growth;    Financial liberalisation;    Financial deepening;    Economic development.;   

DOI  :  10.18488/journal.aefr.2021.112.160.172

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

Various reforms have been brought to bear on the financial system ostensibly to improve the country's macroeconomic variables and the standard of living of the people, among which are the financial reforms that were implemented in recent times. This study examines the impact of financial sector reform on the Human Development Index (HDI) following the recent statistics that show improvement in the HDI of Nigeria since 2005. The study employed several variables as a proxy for financial reforms and adopted the Granger causality test and vector error correction model to analyse the impact of the relationship for the period between 1980 and 2017. The findings revealed a negative long-run relationship between financial sector reform variables and HDI, except for owners' equity. The study also showed positive short-run dynamics between total savings to GDP and HDI. The study concluded that the recent improvements in HDI, which is the proxy for economic development, are not due to the financial sector's reforms; rather, some other influences in the economy could be responsible. The study, therefore, recommends a more inclusive reform agenda that will focus on economic development rather than economic growth.

【 授权许可】

CC BY