Title: Financial Structure and economic growth: empirical evidence from Nigeria

Authors: M.O. Saibu, K.E.I. Bowale, A.E. Akinlo

Addresses: Department of Economics, Obafemi Awolowo University, Ile-Ife, Southwest 234 220005, Nigeria. ' Department of Accounting, Adekunle Ajasin University, Akungba, Ondo State, Southwest Nigeria. ' Department of Economics, Obafemi Awolowo University, Ile-Ife, Southwest Nigeria

Abstract: This study investigates whether changes in the financial structure or the overall financial systems explain economic growth dynamics in Nigeria using vector error correction model. The result shows that changes in financial structure in Nigeria have no significant consequential effects on its real growth rate. The result shows further that despite the negative effect of financial market on economic growth, financial market has positive effect on stock market development hence suggesting that neither the financial market nor stock market based system is dominant factor on economic growth in Nigeria.

Keywords: stock markets; economic growth; financial markets; financial structure; Nigeria; emerging markets.

DOI: 10.1504/IJBEM.2009.023446

International Journal of Business and Emerging Markets, 2009 Vol.1 No.3, pp.264 - 281

Published online: 23 Feb 2009 *

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