Volume 17, No. 2, 2020
Estimators and Economic Growth Nexus in Financial Deepening: Perspectives from a Small Open Economy
Victor Chukwunweike Ehiedu, Anthony Ogormegbunan Odita and Anthony Anyibuofu Kifordu
Abstract
The study covered four (4) selected financial deepening estimators as it affects the economy as a whole. To carry out the study, data were sourced through Statistical Bulletin 2018 and World Bank Development Indicators (2018) from 2003 to 2018. Group of low-income countries have continued to find the need for adequate financial deepening in a bid to enhance their economic growth. Though they are operating a modern type of economy, yet they are mostly mono-economy, relying more on either oil or agricultural products and heavily depending on oil. Hence, Nigeria is a small open economy. In analyzing the data obtained, linear regression analysis was used through SPSS 22.0. The study formulated four (4) hypotheses and the findings showed that the ratio of money supply, credit ratio in private sector, savings ratio and investment have impact significantly on Gross Domestic Product in Nigeria because the p-value t-statistics are 0.0481, 0.027, 0.046 and.000 respectively are all less than 5% significant level. The study, therefore, identified the nexus by concluding that financial deepening has significant impact on Nigeria’s economic growth. This study recommends that government policies should be geared towards increased money supply and well-organized capital market that can improve general economic efficacy.
Pages: 462-474
DOI: 10.14704/WEB/V17I2/WEB17045
Keywords: Financial Deepening, Estimators, Economic Growth, Estimators, Small Open Economy.