IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 10 NO. 9 2024
DOI: 10.56201/ijbfr.v10.no9.2024.pg84.105

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Export Financing and Economic Growth in Nigeria: A Time Series Analysis

Obieche Precious Nkechi, Onuabi, Evans Jared

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Abstract

The study examined the effect of export financing on the growth of Nigeria economy using time series data sourced from Central Bank of Nigeria Statistical Bulletin from 1990- 2023. Real gross domestic product was modeled as the function of commercial bank credit to export sector, export import bank credit to exporters, micro export credit, export grant and Nigerian naira exchange rate per US Dollar. The econometrics tools used in this study include; multiple regressions and Granger Causality test which were used to determine the level of impact that one variable has on the other as well as the direction of causality between them. The result arising from our findings indicates that 56.8 % variations in economic growth were explained by export financing variables. commercial banks credit, export import banks, microcredit export credit and export grant have positive effect on the growth of Nigeria economy while exchange rate have negative effect on the growth of the economy. From the findings, we conclude positive effect of export financing and economic growth in Nigeria. We recommend that Nigeria government should encourage the banking sector, especially the Nigeria Export -Import bank to increase their credit to Nigeria export sector to enhance export productivity and in turn improve economic growth. Nigeria should create a special budgetary allocation for production of export goods to enhance economic growth, there should be awareness programme to Nigeria stake holders and investors to invest or increase their investments in production of export goods and export management policies such as export financing subsidies and grant should be accessible by the commercial banks or export-import bank and Nigerian export incentives should be strengthened.

keywords:

Export Financing, Economic Growth, Nigeria, Time Series Analysis

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