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Internet Usage, Financial Inclusion and Economic Growth in Nigeria

Author

Listed:
  • Babatunde Wasiu Adeoye

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

  • Raymond Osi Alenoghena

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

Abstract

This study investigates the relationship between internet usage, financial inclusion and economic growth in Nigeria for the period 1999 to 2016. Using the time series data for the period, the study utilizes Engle Granger Cointegration Test and the Fully Modified Ordinary Least Squares (FMOLS) approach for analysis. The results showed that Internet usage and broad money have positive and significant effect on financial inclusion. Also, Internet usage has positive and significant effect on economic growth in Nigeria. However, the effect of financial inclusion on economic growth is negative, minimal and insignificant. Furthermore, the effect of the interacted coefficient of internet usage and financial inclusion on economic growth is positive, minimal and insignificant. Hence, the positive effect of internet usage on economic growth in Nigeria is not transmitted through the mechanism of financial inclusion. We recommend that government should strengthen and improve on the positive gains of internet usage on the economy. Also, the monetary authority should take measures to encourage the drive for more savings to improve financial inclusion and ensure that investment by government is channeled into more productive areas to improve the economy.

Suggested Citation

  • Babatunde Wasiu Adeoye & Raymond Osi Alenoghena, 2019. "Internet Usage, Financial Inclusion and Economic Growth in Nigeria," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 2-12, December.
    • Handle: RePEc:ovi:oviste:v:xix:y:2019:i:2:p:2-12
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    References listed on IDEAS

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    More about this item

    Keywords

    Internet usage; financial inclusion; economic growth; cointegrating regression; Nigeria;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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