IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 4 NO. 4 2019

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International Credit Institutions and Real Sector Performance in Nigeria (1986-2018)

PAAGO, J. Kirikor and Chukuigwe E. C.

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Abstract

This study empirically examined international credit institutions and real sector performance in Nigeria within1986-2018. The specific objectives of the study examined the impact of African Development Bank (ADB), International Finance Corporation (IFC) and International Fund for Agricultural Development (IFAD). Time series data on each of the variables were collected from secondary sources, such as World Bank Financial Development Data Base, CBN Statistical Bulletin (various issues),Debt Management Office (DMO) annual reports. Quasi experimental design was adopted for the study with Johansen and Julius (1990) econometric model and ARDL as techniques for data analysis. ADF unit root test was conducted in determining stationarity of the variables. Results obtained showed that the series are mixed integrated and ranging from level 1(0) to and at first difference 1(1). The cointegration regression results showed that all the financing variables have positive significant impacts on output growth rate and fully integrated at the first difference 1(1) except IFC which integrated at level 1(0) ARDL regression results indicates that explanatory variables determine 73.3% of charges in AGO and the F statistic of 6.49 and P. value of 0.0003 revealed the model at good fit at 5% level of significance. On the basis of the findings, it is recommended that international credit institutions particularly IFC, IDA should increase the funding of the real sector to sustain output growth rate increase export and enhance favorable external sector balance and economic sustainability of Nigeria economy.

keywords:

International Credit Institutions, Real Sector, Performance

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