Impact of Financial Sector Development on Employment Generation in Nigeria
Main Article Content
Abstract
The study investigates the impact of financial sector development on employment generation in Nigeria. The variables used in the study were financial efficiency, financial access, financial depth, and financial stability. The study applied secondary time-series data covering the period from 1980 to 2023. In the analysis, the study applied the parsimonious ECM framework and the Cointegration technique to the data. The results showed that there is a long-run relationship among the variables. The parsimonious ECM finding shows that financial access and financial depth have a positive and significant impact on employment generation, while financial stability and financial efficiency establish a positive but insignificant relationship with employment generation. In conclusion, the study showed that financial sector development impacts Nigeria's employment generation within the period. The study thus recommends that adequate financial market and financial institutions regulatory policies be introduced to improve the level of financial access, financial depth, financial efficiency, and financial stability.
Article Details
References
Ajide, F. M. (2020). Asymmetric influence of financial development on unemployment in Nigeria. Ilorin Journal of Economic Policy, 7(2), 39-52.
Ayadi, R., Ben, S. N, & Goaied, M. (2019). Financial development and employment: New Evidence. EMNES Working Paper, 25(1), 1-14.
Ayeni, A. F., Alexander, A.A., Alfa, Y., Saheed, Z, & Ikubor, J. (2024). Impact of financial development on Economic Growth in Nigeria. ABUAD Journal of Social and Management Sciences, 5(2), 221-241.
Babatunde, M.O, & Olabode, E.O. (2023). Does Financial Development and Economic Growth Promote Employment in Nigeria? Journal of Empirical Studies, 10(1), 19-27. Carayannis, E. G., & Campbell, D. F. (2009). Mode 3 ' and ' Quadruple Helix': toward a 21st century fractal innovation ecosystem. International journal of technology management, 46(3-4), 201-234.
Igor, P., Larysa, S., Ruslana, Z.,Leonid, S, & Alla, S. (2019). Employment in the financial sector of economy: Features and Trends. Nowadays and Future Jobs, 2(1), 4-14.
Isiaka, A. R. (2019). The Effect of financial sector development on unemployment in Nigeria: Do measures of financial development matter? DBN Journal of Economics and Sustainable Growth, 2(2), 1-35.
Isiaka, A. R., Terver, T, & Alarudeen, A. (2023). Financial development and unemployment in MENA: evidence from heterogeneous panel causality and quantile via moment regression. Journal of Knowledge Economy, 15(1), 3512-3550.
Katsiaryna, S. (2016). Introducing a new broad-based index of financial development. IMF Working Paper, 16(5), 1-44.
Keynes, J.M. (1936). The general theory of employment, interest and money. Palgrave Macmillan.
National Bureau of Statistics (2024). Retrieved from https://www.Nigerianstat.org.ng Ndubuaku, V., Inim, V., Samuel, U. E., Rosemary, I. H., & Prince, A. I. (2021). Financial development on employment rate in Nigeria. Research in World Economy, 12(1), 267-278.
Oriavwote, V. E. (2021). Real effective exchange rate and unemployment dynamics in Nigeria. Otuoke Journal of Social Sciences, 1(1), 33-43.
Schumpeter, J. (1934). Theory of economic development: an inquiry into profit, capital, credit, interest, and the business cycle. Harvard University Press
Statista (2023). Employment in Nigeria 2023, by Economic Sector. Retrieved from https://www.Nigeria.com
Ubong, E. & Ubong, U. (2024). Industrialization and employment generation in Nigeria: An Empirical Analysis. African Journal of Commercial Studies, 4 (1), 17-30.