ANALYTICAL APPROACH TO DYNAMISM OF FINANCIAL DEEPENING AND PERFORMANCE OF NON-OIL EXPORT IN NIGERIA
Authors:
Mulkat Ajibola Yusuff and Auwal Muhammad Adamu
Abstract:
This study explores the financial deepening- non-oil export performance nexus in Nigeria. Several methods have been employed to examine this link. The results of co integration tests show that the estimated variables do not exhibit convergence property. The impulse response investigation reveals that all the measures of financial deepening excluding credit to private sector have direct and strong effect on performance in non-oil sector. The variance decomposition examination confirm that even though “own shock” constitute largest source of variation in non-oil export performance forecast error, the contribution of all the measures of financial deepening to variation in non-oil exports performance forecast error are also significant. The study therefore concludes that all the measures of financial deepening analyzed are sturdy influencers of production in non-oil sector of the economy.