The Impact of Financial Integration on Economic Growth in Nigeria

Abstract

The study investigated the effect financial market integration on economic growth in Nigeria over the period of thirty-two years ranging from 1990 to 2021. The study designed and specified a multiple regression model to examine the individual and joint effects of the proxies of financial market integration (trade openness, credit to private sector and government expenditure) on economic growth in Nigeria (measured in Gross Domestic Product). The model was estimated by Ordinary Least Square technique using E-views 12 statistical package. The annual time series data used were collected from Central Bank of Nigeria (CBN) statistical bulletin and analyzed with the aim of achieving the stated objectives. The study found that trade openness, credit to private sector and government expenditures have individual and joint significant effect on economic growth in Nigeria. Based on the findings, the study therefore concluded that the financial market integration plays a significant positive role in the sustenance of growth of the Nigerian economy