BANK LENDING, ECONOMIC GROWTH AND THE PERFORMANCE OF THE MANUFACTURING SECTOR IN NIGERIA

  • Tomola Marshal Obamuyi Associate Professor in the Department of Banking and Finance, Adekunle Ajasin University, Akungba-Akoko, Ondo State. Nigeria
  • Adebisi T. Edun Postgraduate student in the School of Economics, University of Cape Town, South Africa
  • Olawale Femi Kayode Lecturer in the Department of Banking and Finance, Rufus Giwa Polytechnics, Owo, Ondo State, Nigeria
DOI: https://doi.org/10.19044/esj.2012.v8n3p%25p

Abstract

The study investigates the effect of bank lending and economic growth on the manufacturing output in Nigeria. Times series
data covering a period of 36 years (1973-2009) were employed and tested with the cointegration and vector error correction
model (VECM) techniques. The findings of the study show that manufacturing capacity utilization and bank lending rates
significantly affect manufacturing output in Nigeria. However, the relationship between manufacturing output and economic
growth could not be established in the country. These results, therefore, call for concerted effort by the government,
manufacturers and the lending institutions to reviewing the lending and growth policies and provide appropriate macroeconomic
environment, in order to encourage investment-friendly lending and borrowing by the financial institutions.

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Published
2012-02-16
How to Cite
Obamuyi, T. M., Edun, A. T., & Kayode, O. F. (2012). BANK LENDING, ECONOMIC GROWTH AND THE PERFORMANCE OF THE MANUFACTURING SECTOR IN NIGERIA. European Scientific Journal, ESJ, 8(3). https://doi.org/10.19044/esj.2012.v8n3p%p
Issue
Vol 8 No 3 (2012): ESJ February Edition
Section
Articles