An Econometric Modelling of Absorptive Capacity, Credit Market Development and Economic Development in Nigeria

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XIGI2

An Econometric Modelling of Absorptive Capacity, Credit Market Development and Economic Development in Nigeria

Dr. Audu Nathan Pelesai
Dr. Audu Nathan Pelesai Niger Delta University, Wilberforce Island, Bayelsa State, Nigeria.
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Abstract

This paper empirically examines the relationship between absorptive capacity, credit market development and economic development in Nigeria. Recent theoretical works show the significance of absorptive capacity and credit market development to economic growth. In this study, the perceived relationship between absorptive capacity, credit market development and economic growth is estimated econometrically using the Ordinary Least Square Estimation Method (OLSEM). The result showed that there is a substantial positive effect of the selected macroeconomic variables on economic growth in Nigeria. The Granger causality test showed that absorptive capacity, human capacity development, lending rate, savings, gross domestic investment and gross domestic product indicates an evidence of causality from the selected macroeconomic variables (ABC, HCD, LR, SAV and GDI) to economic growth/development.

An Econometric Modelling of Absorptive Capacity, Credit Market Development and Economic Development in Nigeria

This paper empirically examines the relationship between absorptive capacity, credit market development and economic development in Nigeria. Recent theoretical works show the significance of absorptive capacity and credit market development to economic growth. In this study, the perceived relationship between absorptive capacity, credit market development and economic growth is estimated econometrically using the Ordinary Least Square Estimation Method (OLSEM). The result showed that there is a substantial positive effect of the selected macroeconomic variables on economic growth in Nigeria. The Granger causality test showed that absorptive capacity, human capacity development, lending rate, savings, gross domestic investment and gross domestic product indicates an evidence of causality from the selected macroeconomic variables (ABC, HCD, LR, SAV and GDI) to economic growth/development.

Dr. Audu Nathan Pelesai
Dr. Audu Nathan Pelesai Niger Delta University, Wilberforce Island, Bayelsa State, Nigeria.

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Dr. Audu Nathan Pelesai. 2012. “. Global Journal of Human-Social Science – C: Sociology & Culture GJHSS-C Volume 12 (GJHSS Volume 12 Issue C13): .

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Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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GJHSS Volume 12 Issue C13
Pg. 33- 43
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An Econometric Modelling of Absorptive Capacity, Credit Market Development and Economic Development in Nigeria

Dr. Audu Nathan Pelesai
Dr. Audu Nathan Pelesai Niger Delta University, Wilberforce Island, Bayelsa State, Nigeria.

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