ANALYSIS OF FINANCIAL INCLUSION AND DOMESTIC INVESTMENT IN NIGERIA’s EMERGING ECONOMY
Keywords:
Financial Inclusion, Domestic Investment, Emerging Economy, Empirical.Abstract
This research work investigates the impact of financial inclusion on domestic investment in Nigeria’s emerging economy using secondary data from 1982 to 2020. The Classical Linear Regression Methodology with variables such as Domestic Investment, Rural Deposits in Commercial banks, Number of commercial bank branches, Inflation, Credit to Private Sector, and Foreign Direct Investment were employed in the study. The study shows that financial inclusion has a significant impact on domestic investment in the Nigeria economy. The results also show that Number of Commercial bank branches, Credit to Private Sector and Inflation are contributes positively to Domestic investment while Rural Deposits in Commercial Banks and Foreign Direct Investment revealed otherwise. The study therefore, concludes that the Nigerian government and policy makers still has much work to do in order to consciously pursue more measures to increase financial inclusion especially in the rural areas so that the economy can begin to reap the full benefits of financial inclusion and greater domestic investment.
Keywords: Financial Inclusion, Domestic Investment, Emerging Economy, Empirical.
JEL Classification: B26, D14, E22, G21, O16, O47.
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