The Causality between Banking Sector Reforms and Sectorial Output Growth

The Causality between Banking Sector Reforms and Sectorial Output Growth

Author by Dr. Andy Okwu

Journal/Publisher: Nternational Journal Of Research In Management Sciences

Volume/Edition: 1

Language: English

Pages: 1 - 12

Abstract

This study attempts to determine the causal linkages between banking sector reforms and output growth of manufacturing sector as well as the direction of such causality. A selected sample of financial development and manufacturing output of Nigeria with annual data between 1970 and 2008 is used and cointegration and Granger-causality techniques were applied to ascertain evidence regarding this important issue. The result of Granger causality analysis showed that the MDGP and banking sector reforms indicators (BF) move differently with one not predicting the other within the study period. Moreover, the empirical results showed that Bank assets with co-efficient 0.7688 (t=2.4267, ? < 0 t=2.996, xss=removed xss=removed xss=removed xss=removed>


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