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VOL. 6, ISSUE 1 (2024)
Impact of financial inclusion on economic growth in Nigeria
Authors
Abubakar Ibrahim Mairiga, Rayyanu Abdulkarim Kaita, Sadiya Labiru Kafur
Abstract
While the nexus between finance and economic
growth is well debated in literature, the impact of financial inclusivity on economic
growth still remains partially explored. This study empirically investigated
the impact of financial inclusion on economic growth in Nigeria covering from
the period of 1983 until 2019. The study constructed a novel index of financial
inclusion in Nigeria using the Principal Component Analysis (PCA) and
Autoregressive Distributed Lag and ECM approaches were employed to test the
impact of financial inclusion on economic growth. Moreover, Bootstrap ARDL
Cointegration technique was employed in testing the long run relationship
between financial inclusion and economic growth. The findings revealed the
existence of long run relationship between financial inclusion and economic
growth. The findings also revealed that financial inclusion has a positive and
significant impact on economic growth both in the long-run and in the
short-run. The study in line with its findings and the methodology adopted,
reiterated the positive effect of financial inclusion on economic growth in
Nigeria. Among other things, the study recommended that, rural financial
markets should be intensified and strengthened to encourage wider access to
credits, specifically to low-income and vulnerable members of the community as
this will improve its role in promoting economic growth in the country.
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Pages:18-24
How to cite this article:
Abubakar Ibrahim Mairiga, Rayyanu Abdulkarim Kaita, Sadiya Labiru Kafur "Impact of financial inclusion on economic growth in Nigeria". International Journal of Commerce and Economics, Vol 6, Issue 1, 2024, Pages 18-24
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