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Relevance of Financial Sector Development on Real Sector Productivity: 21st Century Evidence from Nigerian Industrial Sector

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  • Stephen Oluwafemi Adeusi
  • Olufemi Adewale Aluko

Abstract

This study focuses on the Nigerian industrial sector to examine the relevance of financial sector development on real sector productivity in the 21st century. The model adapts the financial sector development measures used in King and Levine (1993) as predictors of industrial sector production output. Estimating the model with Ordinary Least Square (OLS) method, the study reveals that there is a strong linear relationship between the financial sector and real sector because the coefficient of multiple determinations is relatively high; thus suggesting that financial sector development is crucial for real sector productivity.

Suggested Citation

  • Stephen Oluwafemi Adeusi & Olufemi Adewale Aluko, 2015. "Relevance of Financial Sector Development on Real Sector Productivity: 21st Century Evidence from Nigerian Industrial Sector," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(6), pages 118-132, June.
    • Handle: RePEc:hur:ijarbs:v:5:y:2015:i:6:p:118-132
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    References listed on IDEAS

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    Cited by:

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    2. Basharat Batool & Sundas Shafi & Abdur Rahman & Saqib Javed & Misbah Taj, 2024. "The Causal Nexus between Financial Development and Manufacturing Sector: Empirical Study for Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(3), pages 109-114.
    3. Olajide Oyadeyi, 2023. "Financial development, real sector, and economic growth in Nigeria," SN Business & Economics, Springer, vol. 3(8), pages 1-21, August.
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    6. Saliu Mojeed Olanrewaju, 2021. "Financial System Stability and Manufacturing Performance in Nigeria," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 10(1), pages 109-118, January.

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