Financial inclusion and economic growth in Nigeria
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Olusoji, M. O.
Babcock Journal of Economics, Banking and Finance
Financial inclusion entails access of the populace to financial services to tackle poverty, improve welfare and general standard of living; which consequently promote economic growth. Using a battery of econometric tests, this paper explores the long run relationship between financial inclusion and economic growth in Nigeria between 1981 and 2014. Based on the specified regression model, money supply, liquidity ratio and credit to the private sector appear to be the major drivers of economic growth in Nigeria. The study also validates the finance led growth hypothesis and established that finance causes growth in Nigeria. The implication of our findings is that policy makers need to focus more on long run financial policies that can enhance effectiveness of the financial sector (both money and capital markets) in promoting growth. Also, the government should provide enabling environment and create awareness that can engender more public trust in the country’s financial system.
Odeleye, A.T., & Olusoji, M. O. (2016). Financial inclusion and economic growth in Nigeria. Babcock Journal of Economics, Banking and Finance, 5(1), 37-54.