The Impact Of Commercial Bank Credit On Non-Oil Export Trade In Nigeria

NNAJI CAROLINE 36 PAGES (10157 WORDS) Economics Project

ABSTRACT

This research work examined the impact of commercial bank credit (CBC) on Non-oil export trade in Nigeria. Four variables were used in the study. This study adopted the econometric time series analysis from 1992-2015 and the data were sourced from Central Bank of Nigeria statistical bulletin. The empirical analysis that were carried out to achieve the objectives include unit root, co-integration, the long run regression model and short run error correction model. The Augmented Dickey Fuller was employed in conducting the test of unit root and the variables became stationary at first difference. The co-integration test result reveals the existence of long-run relationship among the variables. Then long run regression and short-run error model was conducted and it discovered that CBC has a direct and positive significant impact on non-oil export, it also reveals that there exist a positive and significant relationship between real exchange rate and non-oil export and significant relationship among real interest rate and non-oil export. Further,  the Central Bank of Nigeria should as an operational guideline, impose  on commercial  banks to set aside a certain amount of money from their yearly profit for financing of non-oil export as it is the case for small and medium scale equity scheme.