PRIVATE SECTOR CREDIT AND SELECTED MACRO-ECONOMIC VARIABLES

Abstract: This study examined how private sector credit affects selected macro-economic variables in Nigeria using annual data from 1981- 2019. The macro-economic variables selected includes; investment, output and inflation. The study was conducted in the light of the Endogenous growth theory, Demand following and supply leading finance hypotheses as well as the financial repression hypotheses of finance. Vector Autoregressive (VAR) model was adopted to model the relationship among variables because of the apparent interrelations amongst variables. The result of the analysis shows that private sector credit has a significant relationship with economic growth, investment and inflation. It is recommended that there should be intervention in the financial market to ensure adequate private sector financing by designing special funding programs for the private sector in form of business grants and low interest loans as well as reforms in form of laws that will enhance market efficiency over time. Keywords: Private Sector, Credit, Inflation, Output, Investment. Title: PRIVATE SECTOR CREDIT AND SELECTED MACRO-ECONOMIC VARIABLES Author: Ofonime Moses Akpan, Endurance Gabriel Udo International Journal of Novel Research in Marketing Management and Economics ISSN 2394-7322 Vol. 9, Issue 3, September 2022 - December 2022 Page No: 57-71 Novelty Journals Website: www.noveltyjournals.com Published Date: 03-November-2022 DOI: https://doi.org/10.5281/zenodo.7277645 Paper Download Link (Source) https://www.noveltyjournals.com/upload/paper/PRIVATE%20SECTOR%20CREDIT-03112022-5.pdfInternational Journal of Novel Research in Marketing Management and Economics, ISSN 2394-7322, Novelty Journals, Website: www.noveltyjournals.co