SME Credit Financing, Financial Development and Economic Growth in Nigeria

This paper examines the impact of small and medium-scale enterprises (SMEs) credit financing and financial market development and their shocks on the output growth of Nigeria. The study estimated a VAR model for Nigeria using 1970-2013 annual data series. Unit root tests and cointegration are carried out. The study explores IRFs and FEVDs in a system that includes output, commercial bank loan to SMEs, domestic credit to private sector by banks, money supply, lending rate and investment. Findings suggest that shocks in commercial bank credit to SMEs has a major impact on the output changes of Nigeria. Money supply shocks also have a sizeable impact on output growth variations amidst other financial instruments. Lastly, neutrality of investment does not hold in Nigeria as it also has impact on output fluctuations.


Issue Date:
Jul 01 2016
Publication Type:
Journal Article
ISSN:
1821-8148
Language:
English
Published in:
African Journal of Economic Review, Volume 04, Number 2
Page range:
1-15
JEL Codes:
C




 Record created 2017-10-25, last modified 2017-10-25

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)