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A Multi-Sectoral Study of Financial Inclusion and Economic Output in Nigeria

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  • Olaniyi Evans

    (University of Lagos, Nigeria)

  • Olaniyi Lawanson

    (University of Lagos, Nigeria)

Abstract

This study evaluates the causal links between financial inclusion and economic output, as well asbetween financial inclusion and the five sectors of the Nigerian economy using cointegration andGranger causality test. The results suggest that there is bi-directional causality between financialinclusion and the aggregate economy. In most cases, there is bi-directional causality betweenfinancial inclusion and the sectors of the economy as well. This study also shows that financial usagehas higher causal links with the economy and its sectors than financial access. Thus, a responsiblepursuit of financial inclusion in Nigeria will emphasize not only creation of access to finance, but mostimportantly, its usage. This study establishes financial inclusion as a potent accelerator of economicprogress, which can help realize the national objectives of building shared prosperity and abolishingextreme poverty. For policymakers, the message is clear: Mainstream rural credit from banks andother financial intermediaries in such a way as to realize increased coverage, broaden financialinclusion and stimulate output.

Suggested Citation

  • Olaniyi Evans & Olaniyi Lawanson, 2017. "A Multi-Sectoral Study of Financial Inclusion and Economic Output in Nigeria," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 195-204, June.
    • Handle: RePEc:ovi:oviste:v:xvii:y:2017:i:1:p:195-204
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    Cited by:

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    2. Evans Olaniyi, 2017. "Back to the Land: The Impact of Financial Inclusion on Agriculture in Nigeria," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 21(4), pages 885-903, Autumn.
    3. Foguesatto, Cristian Rogério & Righi, Marcelo Brutti & Müller, Fernanda Maria, 2024. "Is there a dark side to financial inclusion? Understanding the relationship between financial inclusion and market risk," The North American Journal of Economics and Finance, Elsevier, vol. 72(C).
    4. Ugwuja, V.C. & Attah, C., 2020. "Determinants of Farmers' Financial Inclusion in Ogba Local Government Area (ONELGA) of Rivers State, Nigeria," Nigerian Agricultural Policy Research Journal (NAPReJ), Agricultural Policy Research Network (APRNet), vol. 8(1), December.
    5. Abubakar Adamu Magaji & Daneji Bashir Ahmad & Muhammed Ahmed Ibrahim & Chekene Imam-Ahmad Buba, 2020. "Driving faster financial inclusion in developing nations," Technology audit and production reserves, Socionet;Technology audit and production reserves, vol. 2(4(52)), pages 35-40.
    6. Jarisch, Isabelle & Bödeker, Kai & Bingham, Logan Robert & Friedrich, Stefan & Kindu, Mengistie & Knoke, Thomas, 2022. "The influence of discounting ecosystem services in robust multi-objective optimization – An application to a forestry-avocado land-use portfolio," Forest Policy and Economics, Elsevier, vol. 141(C).
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    8. Adegbola Olubukola Otekunrin & Tough Chinoda & Kudzanai Matowanyika, 2021. "The Nexus Between Economic Growth, Financial Development, Financial Inclusion and Financial Innovation in Africa," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(8), pages 672-681, August.

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    More about this item

    Keywords

    Financial inclusion; output; sectoral output; causality;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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