FINANCIAL DEEPENING AND SELECTED NON-OIL SECTORS GROWTH IN NIGERIA: ARDL ANALYSIS AND VECM | Journa

Using a co-integration research approach of Auto-regressive distributed lag, this article investigates the causal influence of financial deepening on the contribution of the Wholesale and Retail, Service, and Construction sectors to economic development in Nigeria from 1993Q1 to 2020Q4 (ARDL). The analysis found statistically significant financial deepening to promote long-term and short-term economic development across the three non-oil sectors, after accounting for probable effects of crude oil prices and trade openness in these non-oil sectors. Overall, the findings highlight the importance of Nigeria's financial intermediary system in terms of capital mobilisation and allocation, as well as boosting non-oil private sector economic activity. As a result, financial intermediation may be the best option for increasing Nigeria's oil industry dominance.

Please see the link :- https://www.ikprress.org/index.php/JET/article/view/6673