REVISITING THE SECTORAL IMPACT OF DOMESTIC PRIVATE SECTOR CLAIMS IN NIGERIA: LOOKING BEYOND THE BANKING SYSTEM

Obiamaka P. Egbo, Hillary Chijindu Ezeaku

Abstract


This paper took exception from previous studies by looking beyond private sector credit extended by deposit money banks and includes other typologies of repayable facilities extended by non-bank financial institutions to the private sector. The study assessed how these broad financing channels have impacted on the disaggregated economy namely; the manufacturing sector and the agricultural sector. The findings showed that private sector credit had negative impact on the manufacturing sector. When private sector credit increase by 1 percent, the manufacturing sector output decrease by 4.7 percent over the period covered by the study. Similarly, agricultural output was found to be negatively related to private sector credit. A unit change in credit to the private sector lead to 9.5 percent in agricultural output. Our moderating variables – real interest rate and inflation rate both has relative negative effect the manufacturing and the agricultural sectors. This study has implication on the real sectors of the Nigerian economy.

 

JEL: G21; Q10; L60

 

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Keywords


private sector claims; manufacturing sector; agricultural sector

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References


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DOI: http://dx.doi.org/10.46827/ejefr.v0i0.852

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