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Effects of Bank Credits on the Manufacturing Sector Output in Nigeria (1981-2018)

International Journal of Science and Management Studies (IJSMS)
© 2020 by IJSMS Journal
Volume-3 Issue-4
Year of Publication : 2020
Authors : Okere Peter.A, Okere,Cletus O, Nwaneto Ugonma
DOI: 10.51386/25815946/ijsms-v3i4p108
Citation:
MLA Style: Okere Peter.A, Okere,Cletus O, Nwaneto Ugonma "Effects of Bank Credits on the Manufacturing Sector Output in Nigeria (1981-2018)" International Journal of Science and Management Studies (IJSMS) V3.I4 (2020): 74-82.

APA Style: Okere Peter.A, Okere,Cletus O, Nwaneto Ugonma, Effects of Bank Credits on the Manufacturing Sector Output in Nigeria (1981-2018), International Journal of Science and Management Studies (IJSMS), v3(i4), 74-82.
Abstract:
This study investigated the effects of bank credits on the manufacturing sector output in Nigeria from 1981-2018. The data for this study were sourced from Central Bank of Nigeria (CBN) statistical bulletin. The study adopted the Auto-Regressive Distributed Lag (ARDL) bound cointegration test approach and error correction. In the bound test following the ARDL, it investigated that the variables of interest put in the model are bound together in the long-run and error correction term displayed a negative and statistically significant. The negative value shows that there exists an modification speed from short-run disequilibrium towards the long-run balance. Given the error correction instrument outcome, the study revealed that bank credits exhibited a optimistic and significant relationship with the presentation of manufacturing sector in Nigeria. The study therefore recommends that policies geared towards deepening the financial sector and enhancing the healthy and soundness of banks should be vigorously pursued. Also the Central Bank of Nigeria should as a matter of urgency review downwards the lending interest rate in view of this COVID-19 pandemic threatening the whole world.
Keywords: Bank Credits, Financial Deepening, Interest Rate and Manufacturing Sector Output.
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