All books bought on the website can only be read on the app. Download Jackobian to have access to your materials
This study investigates the impact of financial liberalisation on real sector output in Nigeria by adopting
the Ordinary Least Square (OLS) modeling technique for the econometric analysis. Pre-estimation tests
such as the Stationarity and Cointegration tests were also done. The results show that the variables of
interest in the model are cointegrated and that financial liberalisation (proxied by private sector credit)
has a negative impact on manufacturing sector, while it has a positive impact on agricultural sector.
This implies that credit to private sector was diverted to some unproductive ventures, rather than
productive activities. Furthermore, poor infrastructure, high level of corruption, political and economic
instability and high cost fund were found to have constrained the contribution of private sector credit
to economic development. On the other hand, its positive impact on agriculture shows that there is an
improvement in the agricultural sector since the commencement of financial liberalisation. The study
concludes that efforts should be geared towards militating against the socioeconomic cum institutional
factors that constrained the contribution of private sector credit to manufacturing output growth in
Nigeria within the period under review