Open AccessFinancial Deepening, Foreign Direct Investment and Output Performance in Nigeria
Author(s) -
Alabi Mumeen Olatunbosun,
Tella Sheriffdeen Adewale,
Odusanya Ibrahim Abidemi,
Olumuyiwa Ganiyu Yinusa
Publication year - 2018
Publication title -
scientific annals of economics and business
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.204
H-Index - 6
eISSN - 2501-3165
pISSN - 2501-1960
DOI - 10.2478/saeb-2018-0007
Subject(s) - distributed lag , foreign direct investment , economics , financial deepening , capitalization , short run , monetary economics , investment (military) , financial system , finance , macroeconomics , financial intermediary , econometrics , politics , linguistics , philosophy , political science , law
This study examines the relationship between financial deepening, foreign direct investment and output performance in Nigeria from 1980-2015 using the Autoregressive Distributed Lag (ARDL) Bound Test approach. A long-run relationship was established between financial deepening indicators, foreign direct investment and output performance in Nigeria. Foreign direct investment and market capitalization as a percentage of the GDP exerted significantly on output performance both in the short-run and in the long-run periods. It is recommended that financial depth should be enhanced through improved and highly efficient provision of credit by banks to the real sector of the Nigerian economy.
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