IIARD International Institute of Academic Research and Development

Journal of Business and African Economy (JBAE )

E-ISSN 2545-5281
P-ISSN 2695-2238
VOL. 9 NO. 3 2023
DOI: https://doi.org/10.56201/jbae.v9.no3.2023.pg105.120

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Financial Openness and Financial System Stability: Evidence from Nigeria

Odey, Ferdinand Ite, Ph.D, Mbang, Uduak Bassey, Ph.D, Okey, Otendam Jumbo

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Abstract

The overall economic outlook for both the global and domestic economies in the short to medium- term remains uncertain as the effects of supply chain disruptions occasioned by the Russian- Ukraine crisis, elevated global instability. The lingering impact of the Covid-19 pandemic, as well as the broad shocks to foreign capital flows following rate hikes by most advanced economies continue to dampen growth expectations both in Nigeria and worldwide. Hence, this study examined the nexus between financial openness and financial system stability in Nigeria. Annual time series data were sourced from the Central Bank of Nigeria and World Development Indicators. Financial system stability index was calibrated using the Principal Component Analysis (PCA), while financial openness was captured by de’ factor and de’ jure approaches. The study applied the bound testing and granger causality estimation techniques for data analysis. A long run relationship was found among the variables in the estimated model. From the study, it

keywords:

Financial System Stability, Financial Openness, ARDL, PCA, Nigeria

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References:

Ada, J. A., Akan, P. A. Angioha, P. U. & Enamhe, D. C. (2021). Knowledge transferability and
workers’ productivity in public hospitals in South-South Nigeria. International Journal of
Public Administration and Management Research (IJPAMR), 6(6), 50-65.


Anthony Orji, Jonathan E. Ogbuabor, I. & Anthony-Orji, N. (2016). Financial openness and
growth in Nigeria: Empirical evidence from de’ facto and de’ jure approach. IJER © Serials
Publications 13(4), 2016: 1595-162.

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