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Statistical analyzing on the impact of financial deepening on economic growth in Nigeria

 Department: Mathematics and Statistics  
 By: usericon Klintex001  

 Project ID: 8069
   Rating:  (5.0) votes: 1
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   Price:₦3000
Abstract
Financial deepening could be seen as the extent to which financial institutions discharge their financial obligations or deliver their financial products and services. This study examined the effects of financial deepening on the economic growth of Nigeria (2000– 2022). The data was sourced from the Central Bank of Nigeria statistical bulletin. The data were analyzed using the Ordinary Least Square regression method. The findings from the multiple regression analysis show that the model is given as GDP (Y)  6975.027– 0.255X_1 + 4.236X_2 + 17.8486X_3. The result indicates that an increase of 1 unit in Credit to Private Sector results in a decrease in GDP by 0.255 billion. An increase of 1 unit in Broad Money Supply leads to an increase in GDP by 4.236 billion. An increase of 1 unit in the loan-to-deposit ratio results in a GDP increase of 17.85%. It was concluded that among these variables, only the Broad Money Supply has a statistically significant coefficient with a p-value of 0.000, which is less than the 5% significance level. The analysis reveals a complex relationship between financial indicators and GDP. Specifically, increasing the broad money supply significantly boosts GDP, while increased credit to the private sector is associated with a decrease in GDP. The loan-to-deposit ratio also shows a positive relationship with GDP, though its significance is not confirmed. The study therefore recommends that given its significant positive impact on GDP, policies should be designed to manage and possibly increase the broad money supply to stimulate economic growth....
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