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Interaction between credits to private sector, broad money supply and economic growth

Author:

Eugene Iheanacho, PhD

Subject Area:

Social Sciences and Humanities

Abstract:

This study examines the impact financial variablesand economic growth in Nigeria over the period 1981 – 2017 using the classical learn regression this study found indicators of financial variables; credit to private sector and broad money supply triggers economic growth. A unidirectional causal relationship exists amongst them. We recommend as follows that the government should duly make policies that are aimed at increasing the availability of credit provided to private sector. This is because it will aid rational economic decisions that will aim at increasing productivity within the sectors of the economy.

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