2010uzonwannegcphd.pdf (2.46 MB)
The character of the state in financial development and economic growth
thesis
posted on 2012-03-30, 11:12 authored by Godfrey Chidozie UzonwanneThis study involved an analysis of how the character of a state inadvertently
defines the trajectory of financial development of the state and its resultant
impact/causality on economic growth. The guiding theme here is that the
finance growth theory (Schumpeter 1911, Goldsmith 1969) has its
fundamental root in the demographics of western economies with proven
functional and stable political and social institutions. The direct applicability of
this theory to the explanation of financial and macroeconomic phenomena in
developing economies with a unique set of distinct characters may prove
erroneous.
To analyse this assertion, a developing economy (Nigeria) which had
experienced decades of autocratic military governance was studied using a
mixed method research design to gather and analyse data. Under this
approach, triangulation of three data sources was achieved to augment for the
problem of reliability of data sources. A historical case review was conducted
using secondary data. This was followed by an econometric analysis to
determine the direction of causality of financial development on economic
growth applying the vector co-integration analysis and the Granger Causality
test using time series data relating to Real GDP Per Capita, Size, Activity and
Efficiency of Financial Intermediaries and the Stock Market in Nigeria and
dummy variables to represent socio-political characters identified from the
historical analysis. Finally, primary data was generated by questionnaire and
group interview as a means of validating the findings from the historical case
review and the econometric analysis as well as completing the triangulation of
data sources. The historical review revealed three major characters
represented by ethnicity in which prebendalism was strongly inherent, social
unrest culminating in a three year long civil war and persistence of autocratic
military governance and civilian democracies tutored by military dictators
while the econometric analysis revealed the presence of macroeconomic
structures identifying at least one co-integrating vector but the causality test
showed no indication of causality between financial development and
economic growth irrespective of steadily rising annual figures for Real GDP
Per Capita and indicators of positive financial development.
It was concluded that the character of a state in developing economies whose
characters form a unique parabola of activities that are not prevalent in
western democracies where this theory finds its origin is an endogenous
variable in determining the impact of financial development on economic
growth.
History
Supervisor(s)
Lightfoot, Geoffrey; Jackson, PeterDate of award
2011-01-31Awarding institution
University of LeicesterQualification level
- Doctoral
Qualification name
- PhD