BANKING SECTOR CREDIT AND ECONOMIC GROWTH IN NIGERIA (1990 -2020)
Shettima, Fatima Abdullahi Ph.D, Farouq, Fatima Umar and Daba, Sani Aminu
Volume 2 Issue 2
Abstract
The paper examines the relationship between banking sector credit and economic growth in Nigeria spanning the period 1990 - 2020. The long run and short run relationship of variables of interest were established used Autoregressive distributed lag ARDL bound approach for cointegration analysis. The result of the analysis indicates that banking sector credit has positive insignificant relationship with economic growth in Nigeria over the period of coverage while domestic credit to private sectors impedes growth. The paper recommends the need for less credit facilities and more liberalization of economic policies to private sectors in order to stimulate economic growth in Nigeria. Key words: Bank credit, Economic Growth, Autoregressive Distributed Lag (ARDL)
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