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MICROFINANCE BANKS OPERATIONS AND ECONOMIC DEVELOPMENT IN NIGERIA The paper explored the influence of Microfinance Banks (MBs) on Economic Development (ED) in Nigeria. It was embarked upon against the background that as statutory function, loans should be provided by MBs to spur developmental purposes that will improve long run living standard. Microfinance annual data stream sourced from the country’s Central Bank of Nigeria (CBN) statistical report and World Bank national accounts data spanning 1992 to 2020 were analysed with Autoregressive Distributed Lag (ARDL) ECM Model. Following detailed time series estimation, findings reveal that MBs, investment, assets, savings and aggregate credit (loans) significantly influence Nigerian ED during the studied period. Thus, this study concludes that MBs operations in Nigeria is a salient financial inclusion catalyst that significantly spur economic development in Nigeria during the sample studied

Author

Listed:
  • Omorose A. Ogiemudia

    (Banking and Finance Department, Faculty of Management Sciences, University of Benin, Benin City, Edo State, Nigeria.)

  • Igbinovia Lawson Eghosa

    (Banking and Finance Department, Faculty of Management Sciences, University of Benin, Benin City, Edo State, Nigeria.)

  • Amenze S. Airhiavbere

    (Banking and Finance Department, Faculty of Management Sciences, University of Benin, Benin City, Edo State, Nigeria.)

Abstract

No abstract is available for this item.

Suggested Citation

  • Omorose A. Ogiemudia & Igbinovia Lawson Eghosa & Amenze S. Airhiavbere, 2022. "MICROFINANCE BANKS OPERATIONS AND ECONOMIC DEVELOPMENT IN NIGERIA The paper explored the influence of Microfinance Banks (MBs) on Economic Development (ED) in Nigeria. It was embarked upon against the," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 7(2), pages 75-86, Septembri.
    • Handle: RePEc:ora:jrojbe:v:7:y:2022:i:2:p:75-86
    DOI: http://doi.org/10.47535/1991ojbe158
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    References listed on IDEAS

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    1. Hafiz ZahidMahmood & Kausar Abbas & Mehreen Fatima, 2017. "Islamic microfinance and household welfare nexus: empirical investigation from Pakistan," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 7(1), pages 1-15, December.
    2. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    3. E. Chuke Nwude & Kenneth Chikezie Anyalechi, 2018. "The Impact of Microfinance on Rural Economic Growth: The Nigerian Experience," International Journal of Economics and Financial Issues, Econjournals, vol. 8(4), pages 27-31.
    4. Raihan, Selim & Osmani, S.R. & Khalily, M.A. Baqui, 2017. "The macro impact of microfinance in Bangladesh: A CGE analysis," Economic Modelling, Elsevier, vol. 62(C), pages 1-15.
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    More about this item

    Keywords

    ARDL; Economic Development; GDP Per Capita; Investment; Microfinance; Nigeria;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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