ABSTRACT
The
study analyzed the effect of private sector credit and investment on economic
growth in Nigeria (1986-2018). It specifically examines the effect of private
sector credit; Nigeria lending interest rate, foreign direct investment and
foreign portfolio investment on gross domestic product (GDP). Secondary data
were Sourced from CBN bulletin and
national bureau of statistics 2018. A
linear relationship is established between economic growth proxied by GDP the
dependent variable and the independent variables of the study which include
foreign portfolio investment, foreign direct iTnvestment, Nigerian lending interest rate and private sector credit. Data
generated were analyzed with econometric statistical package of E-View 10. Test
statistics used were Augmented Dickey Fuller (ADF) unit root test, and
Autoregressive Distributed Lag (ARDL) model. ADF unit root test showed that
variables in the relationship model were integrated at order one, 1(1) and
1(0). The unit root result necessitated the model for ARDL econometric
analysis. Findings from the long and
short run regression estimate of the ARDL model showed that probability of T-
statistics of the Private Sector credit is significant while that of Foreign Direct Investment, Foreign Private
Investment and Nigerian Lending Interest rate were insignificant. This led to
the conclusion that Private Sector Credit
significantly increases GDP, while Foreign Direct Investment, Foreign
Portfolio Investment and Nigerian Lending Interest Rate does not. The bound
test for Co-integration showed that the relationship is sustained in the long
run and therefore its result led to rejection of null hypothesis of no level
relationship in the model. The Error Correction Coefficient (ECM) CointEq(-1),
is -0.47048, it showed that the model
corrects its previous periods disequilibrium at a speed of 47% estimated
annually. The study therefore recommend that the Nigerian government needs to formulate policies that;
would encourage private sector investment, enhance saving, stabilize interest
rate to improve the confidence of the foreign investors in the economy, as this
might lead to sustainable economic growth in Nigeria among others.
ENYERIBE, E (2022). Effect Of Private Sector Credit And Investment On Economic Growth In Nigeria . Mouau.afribary.org: Retrieved Oct 31, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-private-sector-credit-and-investment-on-economic-growth-in-nigeria-7-2
ENYERIBE, ENYERIBE. "Effect Of Private Sector Credit And Investment On Economic Growth In Nigeria " Mouau.afribary.org. Mouau.afribary.org, 12 Oct. 2022, https://repository.mouau.edu.ng/work/view/effect-of-private-sector-credit-and-investment-on-economic-growth-in-nigeria-7-2. Accessed 31 Oct. 2024.
ENYERIBE, ENYERIBE. "Effect Of Private Sector Credit And Investment On Economic Growth In Nigeria ". Mouau.afribary.org, Mouau.afribary.org, 12 Oct. 2022. Web. 31 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-private-sector-credit-and-investment-on-economic-growth-in-nigeria-7-2 >.
ENYERIBE, ENYERIBE. "Effect Of Private Sector Credit And Investment On Economic Growth In Nigeria " Mouau.afribary.org (2022). Accessed 31 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-private-sector-credit-and-investment-on-economic-growth-in-nigeria-7-2