Financial Sector Development, Economic Growth and Poverty Reduction: New Evidence from Nigeria

Muhammad Yusuf DANDUME

Article Details

Financial Sector Development, Economic Growth and Poverty Reduction: New Evidence from Nigeria

Authors:

Muhammad Yusuf DANDUME

Publisher:

Cankiri Karatekin University

Main Topics:

Etiquette (Manners)

Journal:

Journal of the Faculty of Economics and Administrative Sciences 2014 Vol.4 Issue 2, pp.1-20

Document Type:

Article

Publication Date:

8/2014

Document Language:

English

Document ID (Org No.):

2000934983

Frequency:

Quarterly

eISSN:

2147-4206

pISSN:

1308-5549

Keywords:

Abstract:

 

There is a common view that a well developed financial system will usher economic growth and
 further reduce the level of poverty. In late years the automaticity of this relationship in poor states
 such as Nigeria has been an area of considerable argument. This study attempts to examine this
 presuppose causal relationship between financial sector development, economic growth and
 poverty reduction in Nigeria. The study uses Autoregressive Distributed Lag model (ARDL) and
 Toda and Yamamoto No causality test, using a time series data covering the period of 1970-2011.
 The study includes poverty into the ongoing competing finance growth nexus hypothesis, in order
 to ascertain whether the poor segment of the Nigerian society have access to financial resources
 and also fully participate in the economic growth process in the country. Empirical results of the
 study reveal that financial sector development does not cause poverty reduction. This implies,
 increased in the supply of loan able funds due to financial sector development is not enough to
 ensure poverty reduction. Certain measures are important. Therefore, the results reveal, that
 economic growth causes financial sector growth. Implies that economic growth lead and financial
 sector follow. This implies that for financial sector development, economic growth is necessary,
 even though not sufficient for poverty reduction.

 

Büyüyen finansal sistem ve yoksulluğun azaltılması gelişmiş ekonomilerin en önemli özellikleri olarak karşımıza çıkmaktadır. Son yıllarda fakir ülkelerde, bu iki dinamik arasındaki ilişki tartışma konusu olmaya başlamıştır. Bu çalışma Nijerya’da finansal büyüme ve yoksulluk oranının düşürülmesi arasındaki ilişkiyi ARDL ve Toda, Yamamoto Modelleri’ni kullanarak ortaya koymayı amaçlamaktadır. 1970-2011 yılları arasındaki sürece ilişkin neden-sonuç ilişkisini ortaya koyacak datalar mevcut değildir. Aynı zamanda çalışmada Nijerya toplumunun fakir kesiminin de finansal kaynaklara ulaşabildiği ve ülkenin ekonomik büyüme sürecine tamamıyla dahil olduğu analiz edilmektedir. Çalışmanın ampirik sonuçlarına göre finansal sektörün gelişmesi yoksulluk seviyesini düşürmemektedir. Finansal sektörün gelişimi yoksulluk seviyesinin düşürülmesine yönelik krediler alımını arttırmaktadır. Öte yandan, ekonomik büyüme beraberinde finansal büyümeyi de getirmektedir. Sonuç olarak, tek başına yoksulluk oranını azaltamasa da finansal sektörün gelişimi için ekonomik büyüme şarttır.

Article Details

Financial Sector Development, Economic Growth and Poverty Reduction: New Evidence from Nigeria

Authors:

Muhammad Yusuf DANDUME

Publisher:

Cankiri Karatekin University

Main Topics:

Etiquette (Manners)

Journal:

Journal of the Faculty of Economics and Administrative Sciences 2014 Vol.4 Issue 2, pp.1-20

Document Type:

Article

Publication Date:

8/2014

Document Language:

English

Document ID (Org No.):

2000934983

Frequency:

Quarterly

eISSN:

2147-4206

pISSN:

1308-5549

Neden-Sonuç İlişkisi

Finansal Derinlik

Büyüme

Eşbütünleşme.

Issues

Article Details

Financial Sector Development, Economic Growth and Poverty Reduction: New Evidence from Nigeria

Authors: Muhammad Yusuf DANDUME

Publisher: Cankiri Karatekin University

Main Topics: Etiquette (Manners)

Journal: Journal of the Faculty of Economics and Administrative Sciences 2014 Vol.4 Issue 2, pp.1-20

Document Type: Article

Publication Date: 8/2014

Document Language: English

Document ID (Org No.): 2000934983

Frequency: Quarterly

eISSN: 2147-4206

pISSN: 1308-5549

Neden-Sonuç İlişkisi

Finansal Derinlik

Büyüme

Eşbütünleşme.

Issues

Authors:

Muhammad Yusuf DANDUME

Publisher:

Cankiri Karatekin University

Main Topics:

Etiquette (Manners)

Journal:

Journal of the Faculty of Economics and Administrative Sciences 2014 Vol.4 Issue 2, pp.1-20

Document Type:

Article

Publication Date:

8/2014

Document Language:

English

Document ID (Org No.):

2000934983

Frequency:

Quarterly

eISSN:

2147-4206

pISSN:

1308-5549