<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The study focused on financial sector development and manufacturing performance in Nigeria over the period of 1981 to 2015. In the study, three indicators such as manufacturing capacity utilization, manufacturing output and manufacturing value added were employed to proxy manufacturing performance while money supply as a percentage of GDP, domestic credit to the private sector and liquidity ratio were employed to proxy financial development. The study observed that credit to the private sector and money supply positively but insignificantly enhanced capacity utilization and output, but negatively impacted value added of the manufacturing sector in the short run. There is slight improvement in the long where both money supply and credit to private sector exert positive impact manufactured output. Hence, it becomes crucial for commercial banks to make available certain percentage of their profits for industrial expansion in order to create linkages between both sectors.</p></abstract>

The study focused on financial sector development and manufacturing performance in Nigeria over the period of 1981 to 2015. In the study, three indicators such as manufacturing capacity utilization, manufacturing output and manufacturing value added were employed to proxy manufacturing performance while money supply as a percentage of GDP, domestic credit to the private sector and liquidity ratio were employed to proxy financial development. The study observed that credit to the private sector and money supply positively but insignificantly enhanced capacity utilization and output, but negatively impacted value added of the manufacturing sector in the short run. There is slight improvement in the long where both money supply and credit to private sector exert positive impact manufactured output. Hence, it becomes crucial for commercial banks to make available certain percentage of their profits for industrial expansion in order to create linkages between both sectors.

Financial Development and Manufacturing Performance: The Nigerian Case

Studies in Business and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Financial Development and Manufacturing Performance: The Nigerian Case"}

The study focused on financial sector development and manufacturing performance in Nigeria over the period of 1981 to 2015. In the study, three indicators such...

Financial Development and Manufacturing Performance: The Nigerian Case

Published Online: May 08, 2018

Page range: 97 - 111

DOI: https://doi.org/10.2478/sbe-2018-0009

Keywords
Financial Development, Manufacturing, Liquidity Ratio, Nigeria

© 2018 Mesagan Ekundayo et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Financial Development and Manufacturing Performance: The Nigerian Case

Published Online: May 08, 2018

Page range: 97 - 111

DOI: https://doi.org/10.2478/sbe-2018-0009

KeywordsFinancial Development, Manufacturing, Liquidity Ratio, Nigeria

© 2018 Mesagan Ekundayo et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Financial Development, Manufacturing, Liquidity Ratio, Nigeria