ABSTRACT - In
industrial sector growth, commercial bank credits play a significant role by
creating long term load to the investor’s and advising management in the formulation
and implementation of good relationship between financial sector and industrial
strategies. Our hypothesis is that there is no significant relationship between
commercial banks credit and industrial growth in Nigeria. After determining the
nature of function relationship between the above, using the (Ordinary Least
Square (OLS) method, unit root test, co-integration test and error correction
method) it was found that commercial bank credit to industrial sector and other
variable use in the study were significant.
We observed that R2 was
very high ranked (88%) of total variation of industrial sector growth which was
explained by the commercial bank credit. That the t–statistic suggested rejection
of the Null hypothesis, which will implies that commercial bank credit,
statistically/empirically proof significant to Nigerian industrial growth
during the period under review. Hence the researcher recommends the following:
(1) Commercial bank credit provision ratio should be diversified to productive
investment sector that will enable the investors to invest and return its principal;
this will keep long-run relationship between investors and the bank in Nigerian
economy. (2) Government should encourage private sector participation in some
industries innovation to create competitive character in the economy. (3)
Security should be the hallmark of the government, banks and investor if growth
and development should be the goal of Nigerian industrial sector.
Related Posts: BANKING AND FINANCE,
ECONOMICS
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