Bank Credit and Economic Growth: Evidence from Nigeria
This paper assesses the significance of real bank credit in stimulating real output growth in the case of Nigeria. The study observes that credit Granger causes output. In testing the factors that mobilise credit, it finds that exports in general are negatively related to credit. However, while oil exports are negatively related to credit, non-oil export has positive relationship with credit. Credit is also positively linked to capital inflows and imports. These findings suggest that bank credit is inextricably linked to the opening of the economy to international trade and capital flows in non-oil.
key words: Bank credit; Economic growth; Nigeria
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