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Globalization and Financial Development in Nigeria

Author

Listed:
  • Joseph Ayoola Omojolaibi

    (Department of Economics, University of Lagos, Lagos, Nigeria.)

  • Ekundayo Peter Mesagan

    (Department of Economics, University of Lagos, Lagos, Nigeria.)

  • Nsofor Chinedu Stanley

    (Department of Economics, University of Lagos, Lagos, Nigeria.)

Abstract

Globalization is a worldwide phenomenon. The concept globalization is a very recent term only establishing its current meaning in the 1970s, which emerged from the intersection of four inter related sets of communities of practice, academics, journalists, publishers. This paper models the channels through which globalization affects financial sector development in Nigeria. To this end this study examines the data for these variables used in this study for the period (1987-2014). The results obtained in this study have established that globalization has a significant effect on financial sector development in Nigeria. Higher pace of globalization is found to be associated with a good financial system in Nigeria and it also serves as a stimulant for the economy. The study calls for an enabling environment for the financial system as well as interest rate targeting to encourage more financial in-flow.

Suggested Citation

  • Joseph Ayoola Omojolaibi & Ekundayo Peter Mesagan & Nsofor Chinedu Stanley, 2016. "Globalization and Financial Development in Nigeria," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 20(4), pages 461-478, Autumn.
    • Handle: RePEc:eut:journl:v:20:y:2016:i:4:p:461
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    References listed on IDEAS

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    1. De Nicolò, Gianni & Juvenal, Luciana, 2014. "Financial integration, globalization, and real activity," Journal of Financial Stability, Elsevier, vol. 10(C), pages 65-75.
    2. Mobolaji H I & Ndako U B, 2008. "Financial Development and Globalization in Nigeria," The IUP Journal of Financial Economics, IUP Publications, vol. 0(1), pages 29-45, March.
    3. Mishkin, Frederic S., 2009. "Globalization and financial development," Journal of Development Economics, Elsevier, vol. 89(2), pages 164-169, July.
    4. Aniceto C. Orbeta Jr., 2002. "The impact of globalization on employment in the Philippines," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 39(2), pages 1-36, December.
    5. Orbeta, Aniceto Jr. C., 2002. "Globalization and Employment: The Impact of Trade on Employment Level and Structure in the Philippines," Discussion Papers DP 2002-04, Philippine Institute for Development Studies.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Mesagan, Ekundayo Peter & Olunkwa, Chidi Ndubuisi, 2022. "Heterogeneous analysis of energy consumption, financial development, and pollution in Africa: The relevance of regulatory quality," Utilities Policy, Elsevier, vol. 74(C).
    2. Alade Olajide RAJI & Rasheed Adegboga AFOLABI & Titilayo Abiodun OSINUGA, 2021. "Financial Globalisation and the Performance of Nigerian Deposit Money Bank," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 5-11.
    3. Mesagan, Ekundayo Peter & Alimi, Olorunfemi Yasiru & Vo, Xuan Vinh, 2022. "The asymmetric effects of exchange rate on trade balance and output growth," The Journal of Economic Asymmetries, Elsevier, vol. 26(C).
    4. Mohammed Abubakar, 2024. "Globalisation and Output Growth Nexus in Sub-Saharan Africa: the Critical Role of Trade Liberalisation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2218-2240, March.
    5. Yusuf, Ismaila Akanni & Mesagan, Ekundayo Peter & Amadi, Agatha Nkem, 2020. "Effect of financial deepening on stock market returns: The case of military and democratic post-SAP regimes in Nigeria," BizEcons Quarterly, Strides Educational Foundation, vol. 6, pages 3-21.
    6. Isaac Azubuike Ogbuji & Ekundayo Peter Mesagan & Yasiru Olorunfemi Alimi, 2020. "The Dynamic Linkage between Money Market, Capital Market and Economic Growth in Ghana: New Lessons Relearned," Econometric Research in Finance, SGH Warsaw School of Economics, Collegium of Economic Analysis, vol. 5(2), pages 59-78, December.
    7. Ismaila Akanni Yusuf & Agatha Nkem Amadi & Mohammed Bashir Salaudeen, 2020. "Effects of Risk Culture and Appetite on Effective Risk Management in Nigerian Banks: Case Study of United Bank for Africa Plc," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(2), pages 81-87, June.
    8. Ekundayo Peter Mesagan & Xuan Vinh Vo & Precious Muhammed Emmanuel, 2023. "The technological role in the growth-enhancing financial development: evidence from African nations," Economic Change and Restructuring, Springer, vol. 56(1), pages 657-680, February.

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