Interest rate liberalisation and economic growth in Nigeria: evidence based on the ARDL-bounds testing approach Online publication date: Tue, 17-Jun-2014
by Erasmus L. Owusu; Nicholas M. Odhiambo
International Journal of Sustainable Economy (IJSE), Vol. 6, No. 2, 2014
Abstract: This paper examines the relationship between interest rate liberalisation policies and sustainable economic growth in Nigeria. Employing the autoregressive-distributed lag (ARDL) - bounds testing approach and using GDP per capita as economic growth indicator, the paper establishes a long run relationship between economic growth and interest rate liberalisation, which is represented by an index calculated using principal component analysis (PCA). The empirical findings of this paper show that interest rate liberalisation policies have a positive impact on economic growth in Nigeria. These results apply irrespective of whether the test is conducted in the short run or in the long run. This supports the numerous past studies, which have reported positive results regarding the effects of interest rate liberalisation on economic growth. The paper, therefore, concludes that interest rate liberalisation policies have been very effective in bolstering economic growth in Nigeria.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Sustainable Economy (IJSE):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook