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Impact Of Bank Credit On The Real Sector: Evidence From Nigeria

Author

Listed:
  • I. Oluwafemi Oni
  • A. Enisan Akinlo
  • Elumilade D. Oladepo

Abstract

The paper examines the impact of bank credit to output growth in the manufacturing and agricultural sub sectors of the economy over the period 1980-2010. Using the error correction modeling techniques, the results show that bank credit has significant impact on manufacturing output growth both in the short run and long run but not in the agricultural sub sector. Inflation and exchange rate depreciation have negative effects on manufacturing output growth in both short run and long run. To boost output growth in the real sector, more bank credit should be made available to the real sector especially the manufacturing sector. Also, inflation should be kept low while the value of the domestic currency should be strengthened.

Suggested Citation

  • I. Oluwafemi Oni & A. Enisan Akinlo & Elumilade D. Oladepo, 2014. "Impact Of Bank Credit On The Real Sector: Evidence From Nigeria," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 8(3), pages 39-47.
    • Handle: RePEc:ibf:gjbres:v:8:y:2014:i:3:p:39-47
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    References listed on IDEAS

    as
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    Cited by:

    1. Alaba John, Stephen & Yetunde Lawal, Rodiat, 2019. "Impact Of Sectoral Allocation Of Banks' Credit On Economic Growth In Nigeria," International Journal of Contemporary Accounting Issues-IJCAI (formerly International Journal of Accounting & Finance IJAF), The Institute of Chartered Accountants of Nigeria (ICAN), vol. 8(2), pages 96-113, September.
    2. Otubu, Osaretin Paul, 2020. "Bank Credits and Yield of Fisheries Production in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(6), pages 621-632, June.
    3. Hacievliyagil Nuri & Eksi Ibrahim Halil, 2019. "A Micro Based Study on Bank Credit and Economic Growth: Manufacturing Sub-Sectors Analysis," South East European Journal of Economics and Business, Sciendo, vol. 14(1), pages 72-91, June.

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    More about this item

    Keywords

    Bank Credit; Real Sector;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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