Financial System Broadening and Economic Performance

A considerable amount of scholarly works have examined the link between financial system broadening and economic performance using varieties of econometric models. Although, most of these studies have concentrated attention on the developed economies, very few have examined the impact on emerging economies. In Nigeria, some efforts have been made, though not comprehensive enough to model this nexus. This has created gap in the literature which needs to be filled. It is in view of this that this study examines the tie between financial system broadening and economic performance. The time series data was collected from the Central Bank of Nigeria Statistical Bulletins covering a period of 55 years (1960 – 2014) and analyzed using descriptive statistics, Pearson’s correlation using SPSS 22, and multiple regression analysis using Eviews 8.0. The findings reveal that financial system broadening via aggregate money supply has positive effect on the economic performance. However, financial system broadening via credit to private sector has a negative effect on the economic performance. The study also finds that money supply is positively correlated with economic performance. Private sector credit also shows a positive relationship with economic performance. The study was limited by including only fifty-five years in the selection of period covered, making this possibly biased selection and it may not be adequate to generalize the results for Nigeria. The study has contributed to the economic performance literature with a better understanding of the role of financial system deepening and its association with economic performance. This study provides valuable knowledge to policy makers and economic managers, to refine their current policies and subsequently improve financial system broadening and economic performance. Keywords: Economic performance, financial system broadening, Nigeria

NON-OIL EXPORTS AND ECONOMIC GROWTH IN NIGERIA: AN EMPIRICAL ANALYSIS

This research utilizes yearly data from 1971 to 2021 to analyse the trajectory of non-oil exports and its impact on the economic growth of Nigeria. The analysis of the data was conducted utilising the Bayesian vector autoregressive model. The study's findings provide empirical evidence supporting the notion that non-oil exports have a positive and statistically significant impact on economic growth in Nigeria. For instance, the percentage rise in cocoa exports during the last year (QCXP (-1)) and the past two years (QCXP (-2)) resulted in a corresponding increase in GDP of around 0.12 percent and 0.39 percent, respectively. Furthermore, it is worth noting that the Gross Domestic Product (GDP) exhibited a growth of around 0.59 percent and 0.49 percent correspondingly subsequent to a one percent upsurge in palm kernel exports throughout the preceding one year (QPKX (-1)) and the preceding two years (QPKX (-2)). Moreover, the export of rubber in Nigeria has been found to have a notable and favourable influence on the country's economic growth. Specifically, a one percent increase in the quantity of rubber exported in the current and previous years (QRXP (-1) and QRXP (-2)) corresponds to about 13.1 percent and 7.9 percent increases in the Gross Domestic Product (GDP) of Nigeria, respectively. The findings indicate a 1% rise in EXRT (-1), while EXRT (-2) correspondingly led to a GDP growth of around 0.16% and 0.35% respectively. Based on the empirical evidence, it is strongly advised that the Nigerian government should enhance its endeavours in the cultivation and processing of cocoa, palm kernel, and rubber as a means to foster the holistic economic advancement of the nation