DEPOSIT MONEY BANKS, MANUFACTURING SECTOR AND ECONOMIC DEVELOPMENT IN NIGERIA: AN ARDL APPROACH
Abstract
This study examines the relationship between deposit money banks,
manufacturing sector, and economic development in Nigeria from 1980 to 2025.
Main indicators include credit reserve ratio, liquidity ratio, monetary policy
rate, minimum rediscount ratio, manufacturing sector output, treasury bills and
open market operation. Data were sourced from the Central Bank of Nigeria
(CBN) Statistical and the analysis employed the Augmented Dickey-Fuller (ADF)
unit root test and the Autoregressive Distributed Lag (ARDL) model to ensure
data stationarity and robust examination of long-run and short-run
connections. The study used Augmented Dickey Fuller (ADF) test Unit root test
to Co-integration and ARDL approach. Results revealed that R
2 = 0.803933
meaning that the various independent variables explain 80% in dependent
variable per capita income (PCI) in both the short and long run. The study
concluded that deposit money bank indicators significantly affect Nigeria’s
economic development. It recommended that the Central bank (CBN) should
implement stable policies to improve liquidity management and credit
allocation to stimulate overall economic development.
This article is available as a PDF download
Published in JOURNAL OF BUSINESS & ECONOMY
ISSN: 2808-5428
This article appears in our peer-reviewed academic journal
View JournalRelated Articles
Explore similar research in our collection
LIQUIDITY MANAGEMENT AND FIRM VALUE OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA
BENEDICT SOJE, ERNEST EBONG INYANG, BENJAMIN EMOFE UDOLU
Oct 21, 2026
This study examines the effect of liquidity on firm value specifically among consumer goods firms i...
View ArticleFOREIGN PORTFOLIO INVESTMENT VOLATILITY AND ECONOMIC GROWTH IN NIGERIA: EVIDENCE FROM TIME-SERIES DATA
PERETIEMO, JUDE CLARKE, AKEKERE, JONAH
Oct 20, 2026
This study examined the relationship between foreign portfolio investment volatility and economic g...
View ArticleNAIRA REDESIGN AND FOREIGN EXCHANGE RATE IN NIGERIA
BAKER, ESTHER OYEINTARI, PhD
Oct 19, 2026
This study examined the relationship between Naira redesign and exchange rate in Nigeria, with mone...
View Article