Theoretical Economics Letters, 2017, 7, 2239-2254
http://www.scirp.org/journal/tel
ISSN Online: 2162-2086
ISSN Print: 2162-2078
DOI: 10.4236/tel.2017.77153 Dec. 27, 2017 2239 Theoretical Economics Letters
Financial Development, Export and
Economic Growth in Nigeria
Ismaila Ahmed Sajo, Bin Li
Collage of Economics and Trade, Hunan University, Changsha, China
Abstract
This paper examines the relationship among Financial Development, Export
and Economic growth in Nigeria. The ADF and PP test are used in checking
the order of integration of the variables and Johasen co-integration metho-
dology is employed to investigate the long run relationship among the va-
riables. Time series data were collected between 1994 and 2013. The direction
of causality between variables is tested by Granger causality test and Ordinary
least square (OLS). Econometric techniques were used to estimate the model.
Evidence from the study found that exports and transportation development
has a positive significant effect and influence in economic growth. While fi-
nancial development, international trade structure and energy sector has a
negative effect on economic growth. The study recommends that government
should continue to intensify its efforts in promoting confidence of the public
on such sectors, transform energy sectors through adequate and effective reg-
ulation and supervision; the reforms in the financial sector should be sus-
tained so as to be able to channel more resources for investment and produc-
tive purposes.
Keywords
Financial Development, Export Structure, Economic Growth and Nigeria
1. Introduction
The finance is the core of modern economy. Preventing and dissolving from
finance risk, and in achieving financial activities safely, efficiently and steadily
are the major factors for developing national economy and financial innovation.
Finance is the lifeline of modern economy and if there is no finance globaliza-
tion, there is no economy globalization. Finance globalization has been pro-
moted to enlarge international finance market; multinational trade species and
How to cite this paper: Sajo, I.A. and Li,
B. (2017) Financial Development, Export
and Economic Growth in Nigeria. Theo-
retical Economics Letters, 7, 2239-2254.
https://doi.org/10.4236/tel.2017.77153
Received: November 14, 2017
Accepted: December 24, 2017
Published: December 27, 2017
Copyright © 2017 by authors and
Scientific Research Publishing Inc.
This work is licensed under the Creative
Commons Attribution International
License (CC BY 4.0).
http://creativecommons.org/licenses/by/4.0/
Open Access