IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 9 NO. 11 2023
DOI: https://doi.org/10.56201/ijssmr.v9.no11.2023.pg205.217

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Finametric Analysis of Financial Innovation and Economic Growth in Nigeria

Monday A. Gbanador, Blessing Owate Obari, Nekabari Opgah

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Abstract

The study empirically investigates the effect of financial innovation on economic growth in Nigeria using quarterly time series data spanning through the periods of 2010 to 2021 while historical data design was adopted for the study. The Gross Domestic Product was used as proxy for the dependent variable while Automated teller machine, Web banking, Mobile banking and Point of sale transactions were adopted as proxies for the independent variables. The Augmented Dickey Fuller (ADF), Phillips-Perron, Breusch-Pagan-Godfrey heteroskedasticity test, CUSUM test, Johansen cointegration test, Parsimonious Error Correction model and the fully modified Least Square were used for the data analysis. The outcome of the Johansen Cointegration and the fully modified least squares indicated evidence of long-run relationship between financial innovation and economic growth in Nigeria. From the foregoing, the study concludes that the adoption of financial innovation enhances economic growth in Nigeria. Based on the findings, the study suggests that appropriate policies should be formulated to build the confidence of customers regarding the reliability of financial innovation products.

keywords:

Automated Teller Machine; Point of sale; Web banking; Mobile banking; Economic growth; Financial innovation.

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References:

Abor, J. (2005), Technological Innovations and Banking in Ghana: An Evaluation of Customers’
Perceptions. IFE Psychologia: An International Journal, 13(1), 170-187.
Adesete, A., Auwal, A.M. & Risikat, O.D. (2020). Financial Innovation and Economic Growth:
Empirical Evidence from Nigeria. EuroEconomica, 3(39), 7-32.
Bara, A. & Mudzingiri, C. (2016). Financial innovation and economic growth: evidence from
Zimbabwe. Investment Management and Financial Innovations, 13(2), 65-75.
Chukwunulu, J. I. (2019). Effect of Financial Innovation on the Nigerian Economy. World
Journal of Innovative Research, 6(5), pp. 15-21.

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