THE EFFECT OF MICROFINANCE BANKS ON THE ECONOMIC GROWTH: EVIDENCE FROM NIGERIA

Ifeoma Maria Ihegboro, Maureen Ifeoma Iyke-Ofoedu, Chinedu Afamefuna Obiora-Okafo, Anthony Okechi Obiora

Abstract


The study seeks to examine the impact of microfinance institutions on the economic growth of a country, thus using Nigeria as a case study. The review utilizes the various relapse examination given that the information is cross-sectional and time series in nature. Optional information on all business banks was extricated from the National Bank of Nigeria’s measurable release and yearly reports. The information utilized in this model are time series optional information for the period 1992 to 2019. The discoveries of the review show that microfinance credits emphatically affect the short-run monetary presentation in Nigeria. Microfinance credits improved utilization per capita in the short run with a great coefficient, albeit these bank credits don't fundamentally affect monetary development over the long haul. Microfinance speculation be that as it may, essentially affects monetary execution in Nigeria over the long haul. Albeit miniature money advances are significant in the development process in Nigeria, different measures, for example, helping farming creation and finding a way suitable way to upgrade per capita pay are similarly significant in supporting the Nigerian monetary development. That's what we suggest, microfinance foundations ought to credit to further develop utilization in the short run, while the long run objective ought to be to further develop speculation and other capital aggregation.

           

JEL: D01, D04, G21

 

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Keywords


microfinance, consumption per capita, per capita income, economic growth

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References


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DOI: http://dx.doi.org/10.46827/ejefr.v7i2.1481

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