Banks, markets, and economic growth in Nigeria

Figures & data

Table 1. Descriptive statistics.

	$\mathit{\text{lnGDP}}$	$\mathit{\text{lnMNM}}$	$\mathit{\text{lnTRA}}$	$\mathit{\text{lnTBL}}$	$\mathit{\text{lnLOA}}$
Mean	30.761	10.685	7.694	11.005	10.719
Median	30.620	10.876	6.204	11.394	10.083
Minimum	29.801	3.589	0.419	4.663	4.788
Maximum	31.887	16.312	14.670	16.046	16.577
Std.Dev	0.597	3.749	4.197	3.431	3.832
Skewness	0.478	−0.146	0.296	−0.074	0.077
Kurtosis	2.357	1.806	1.715	1.820	1.3134
Normality test	6.077**	6.389**	11.714***	5.483*	8.078**
(p-Value)	(0.0479)	(0.0410)	(0.0029)	(0.0645)	(0.0176)

Note. ***, **, and * denote that normality is rejected at 1, 5, and 10% levels, respectively.

Source: Authors’ calculations.

Table 2. Unit root test results.

Variable	ADF			PP
	I(0)	I(1)	Decision	I(0)	I(1)	Decision
$\mathit{\text{lnGDP}}$	0.045	−5.361***	I(1)	0.045	−5.361***	I(1)
$\mathit{\text{lnMNM}}$	−1.801	−7.909***	I(1)	−1.801	−7.909***	I(1)
$\mathit{\text{lnTRA}}$	−0.846	−7.658***	I(1)	−0.846	−7.658***	I(1)
$\mathit{\text{lnTBL}}$	−1.261	−9.152***	I(1)	−1.261	−9.152***	I(1)
$\mathit{\text{lnLOA}}$	−0.303	−6.159***	I(1)	−0.303	−6.159***	I(1)

Note: *** denotes statistical significance at 1% level.

Source: Authors’ calculations.

Table 3. Bounds testing approach results.

Model	F-statistic	Regressors				Decision
$\mathit{\text{lnGDP}}$t = $f$ ($\mathit{\text{lnMNM}}$t, $\mathit{\text{lnTRA}}$t, $\mathit{\text{lnTBL}}$t, $\mathit{\text{lnLOA}}$t)	7.733		1%	5%	10%	Cointegration exists
		I(0)	4.176	3.062	2.568
		I(1)	5.676	4.314	3.712

Source: Author’s calculations.

Table 4. Long-run and short-run estimates (dependent variable = ${\mathit{\text{lnGDP}}}_t$).

	Coefficient
${\mathit{\text{ECT}}}_{t-1}$	−0.75 (−5.35)***
Long-run estimates
${\mathit{\text{lnMNM}}}_t$	0.05 (0.77)
${\mathit{\text{lnTRA}}}_t$	0.04 (1.22)
${\mathit{\text{lnTBL}}}_t$	0.10 (1.79)*
${\mathit{\text{lnLOA}}}_t$	0.02 (0.34)
Short-run estimates
${\Delta \mathit{\text{lnTBL}}}_t$	−0.09 (−2.67)**
${\Delta \mathit{\text{lnTBL}}}_{t-1}$	−0.08 (−3.17)***
${\Delta \mathit{\text{lnTBL}}}_{t-2}$	−0.04 (−2.57)**
Constant	−0.01 (−0.39)
R^2	0.503

Notes: ***, **, and * represent significance at 1, 5, and 10% levels, respectively. The t-statistics in parentheses.

Source: Authors’ calculations.

Table 5. Granger causality test results.

Dependent variable	Short-run causality (chi-square values)					Long-run causality
	${\Delta \mathit{\text{lnGDP}}}_{t-1}$	${\Delta \mathit{\text{lnMNM}}}_{t-1}$	${\Delta \mathit{\text{lnTRA}}}_{t-1}$	${\Delta \mathit{\text{lnTBL}}}_{t-1}$	${\Delta \mathit{\text{lnLOA}}}_{t-1}$	${\mathit{\text{ECT}}}_{t-1}$
${\Delta \mathit{\text{lnGDP}}}_t$		2.31 [0.6788]	1.59 [0.8113]	7.28 [0.1219]	1.88 [0.7581]	−0.075 [0.544]
${\Delta \mathit{\text{lnMNM}}}_t$	2.68 [0.6128]					−0.165*** [0.000]
${\Delta \mathit{\text{lnTRA}}}_t$	9.51** [0.0496]					−0.149 [0.864]
${\Delta \mathit{\text{lnTBL}}}_t$	6.56 [0.1613]					−0.890* [0.076]
${\Delta \mathit{\text{lnLOA}}}_t$	3.24 [0.5186]					−0.272 [0.447]

Notes: ***, **, and * represent significant at 1, 5, and 10% levels, respectively. The p-values in parentheses.

Source: Authors’ calculations.

Table 6. Diagnostic tests.

	p-Value
Breusch-Godfrey LM test	0.9992
White’s test	0.4856
Breusch-Pagan/Cook-Weisberg test	0.2224
Ramsey RESET test VIFs: $\mathit{\text{lnGDP}}$ (1.28), $\mathit{\text{lnMNM}}$ (1.15), $\mathit{\text{lnTRA}}$ (1.20), $\mathit{\text{lnTBL}}$ (1.21), $\mathit{\text{lnLOA}}$ (1.40) Mean VIF: 1.22	0.4171

Source: Authors’ calculations.

Figure 1. Cumulative sum of recursive residuals (CUSUM) plot.

Source: Authors’ calculations.

Figure 2. Cumulative sum of squares of recursive residuals (CUSUMQ) plot.

Source: Authors’ calculations.

Data availability statement

The data for this study are available on request from the authors.