Effects of Financial Sector Reforms on Economic Growth. The Case of Nigeria

Studienarbeit , 2019 , 68 Seiten , Note: 4.60

BWL - Bank, Börse, Versicherung

The objectives of this study includes to examine the effects of banking sector reforms on bank performance, savings, investments, developments of the Nigerian Banking System and Economic Growth.

The banking sector is without no doubt a very essential part of the economy of a nation and any reforms carried out in it extend to other parts of the economy representing a transformational moment for the economy and its people. So it remains a nationwide challenge that the Nigerian banking sector and it’s reforms haven’t been able to significantly support the long-term financial needs of the real sector or facilitate the growth of the Nigerian economy The Augmented Dickey-Fuller (ADF) Test and The Phillip-Perron Test were used to test for stationarity of the variables, while the Johansen co-integration test was employed to indicate the existence of a long-run relationship among Gross Domestic Product—which acted as the Economic Growth proxy, Commercial Bank’s Capital, Commercial Bank’s Credit, and Number of Commercial Bank Branches which acted as the other variables. Secondary data was sourced from Commercial Bank Statistics, Central Bank Of Nigeria Bulletins, Nigeria Bureau Of Statistics, Statistical Bulletins for the period of 1998-2017. Conclusively, there was a positive and significant relationship betweenEconomic Growth and Banking Sector Reforms in the long run, but a negative relationship between Economic Growth and Financial Sector Reforms in the short-run. It was recommended that the government should ensure political and macroeconomic stability as the activities in all other sectors are affected by them, and that people are enlightened on the benefits of banking sector reforms so that they don’t take opposing actions against the goal of reforms.

Inhaltsverzeichnis (Table of Contents)

• CHAPTER ONE: INTRODUCTION
  • 1.1 Background to the Study.
  • 1.2 Statement of the Problem.
  • 1.3 Research Questions.
  • 1.4 Objectives Of The Study
  • 1.5 Research Hypotheses
  • 1.6 Significance Of The Study
  • 1.7 Scope Of Study
  • 1.8 Plan Of The Study.
  • 1.9 Definition Of Terms
• CHAPTER TWO: LITERATURE REVIEW
  • 2.1 Conceptual Clarifications.
    • 2.1.1 Nigerian Banking Systems
    • 2.1.2 Banking Sector Reforms in Nigeria..
    • 2.1.3 Banking Sector Reforms and Development in Nigeria.
    • 2.1.4 Banking sector reforms and economic growth
    • 2.1.5 Banking sector reforms and Banks' Performance in Emerging Market.
    • 2.1.6 Banking Sector Reforms and Recent Developments in The Nigerian Banking System
  • 2.2 Theoretical Review
    • 2.2.1 Theories of Economic Growth.
    • 2.2.2 Camels Analysis
  • 2.3 Empirical Review
• CHAPTER THREE: THEORETICAL FRAMEWORK AND RESEARCH METHODOLOGY
  • 3.1 Theoretical Framework
    • 3.1.1 Endogenous Growth Theory.
  • 3.2 Model Specification.
  • 3.3 A Priori Expectation.
  • 3.4 Estimation Techniques
    • 3.4.1 Augmented Dickey-Fuller Test
    • 3.4.2 Phillips Perron Unit Root Test
  • 3.5 Description Of Variables...
  • 3.6 Sources Of Data
• CHAPTER FOURDATA ANALYSIS AND INTERPRETATION OF RESULTS.
  • 4.1 Trend Relationship between GDP Growth Rate and Commercial Bank Capital…………………………………….
  • 4.2 Testing for the Unit Root Status of the Variables.
    • 4.2.1 Visual Inspection of the Variables .......
    • 4.2.2 Augmented Dickey-Fuller Unit Root test....
    • 4.2.3 Philip-Peron Unit Root Test..
  • 4.3 Testing for Long Run Relationship among the Variables........
  • 4.4 Vector Error Correction Model......
    • 4.4.1 Long Run Impacts of Banking Sector Reform on Economic Growth
    • 4.4.2 Short Run Impacts of Banking Sector Reform on Economic Growth
• CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS....
  • 5.1 Summary...

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This research aims to assess the impact of banking sector reforms on economic growth in Nigeria between 1998 and 2017. The study explores the relationship between the banking sector and economic performance, analyzing the effects of various reforms on the Nigerian economy.

• The role of banking sector reforms in promoting financial stability and economic growth in Nigeria.
• The impact of reforms on the performance of Nigerian banks and their contribution to the real sector.
• The relationship between banking sector reforms and the development of the Nigerian financial system.
• The effectiveness of various reform measures implemented in Nigeria.

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter One: Introduction - This chapter sets the stage for the research by providing background information on the importance of the banking sector in economic development. It introduces the statement of the problem, research questions, objectives, hypotheses, significance, scope, plan, and definitions of key terms.
• Chapter Two: Literature Review - This chapter provides a comprehensive review of the existing literature on banking sector reforms, economic growth, and the Nigerian banking system. It explores various theoretical perspectives and empirical studies related to the subject matter.
• Chapter Three: Theoretical Framework and Research Methodology - This chapter outlines the theoretical framework underpinning the study, specifically focusing on the Endogenous Growth Theory. It details the model specification, a priori expectations, estimation techniques, and data sources used in the research.
• Chapter Four: Data Analysis and Interpretation of Results - This chapter presents the empirical results of the analysis. It examines the trend relationship between GDP growth rate and commercial bank capital, conducts unit root tests for the variables, and analyzes long-run and short-run impacts of banking sector reform on economic growth using the Vector Error Correction Model.

Schlüsselwörter (Keywords)

The study focuses on the critical relationship between banking sector reforms and economic growth in Nigeria. Key themes include: banking sector reforms, financial stability, economic growth, banking performance, financial sector development, and the Nigerian economy. The study utilizes data and analytical methods to explore the impact of various reform measures on key economic indicators, providing insights into the effectiveness of government policies in promoting sustainable growth.

• Veranstaltung: Banking and Finance
• Note: 4.60
• Autor: Angel Okonkwo (Autor:in)
• Erscheinungsjahr: 2019
• Seiten: 68
• Katalognummer: V1059911
• ISBN (eBook): 9783346516152
• ISBN (Buch): 9783346516169
• Sprache: Englisch
• Schlagworte: Banking Sector Reforms, Economic Growth, Nigeria.