AN EMPIRICAL INVESTIGATION OF THE IMPACT OF BANK CREDIT ON ECONOMIC GROWTH IN NIGERIA

Atseye; Fidelis Anake; Edim; Ndifon Obim; Ezeaku; Hillary Chijindu

Volume : V, Issue : XI, November - 2015

AN EMPIRICAL INVESTIGATION OF THE IMPACT OF BANK CREDIT ON ECONOMIC GROWTH IN NIGERIA

Atseye, Fidelis Anake, Edim, Ndifon Obim, Ezeaku, Hillary Chijindu

Abstract :

 This paper analysed the impact of bank credit on economic growth in Nigeria during the period spanning from 1987 to 2012. The study adopted the ex–post facto research design and time series data were collated from the Central Bank of Nigeria Statistical Bulletin. OLS regression statistic and Granger Causality Test were used to analyse the data. The estimated regression results indicated that bank credit has impacted positively and significantly on economic growth over the period of the study. The study concludes that for continuous growth of the Nigerian economy, policy frameworks that favour more credit allocation to the private sector with minimal interest rate should be encouraged. This will guarantee private sector investment, hence real sector growth and development.