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This study examines the direction of causality between financial sector development and inclusive growth using panel data of 32 countries in sub-Saharan Africa (SSA) between 2000 and 2019. Findings from Dumitrescu - Hurlin panel causality test revealed that the panel of SSA’s countries and two other sub-regions (West and South African sub-regions) indicate unidirectional causality while the other two (East and Central African) show evidence of no causality. Likewise, this study observes some variations at the country-specific level where 24 out of the 32 countries selected displayed evidence of no causality, and 8 countries demonstrated evidence of unidirectional causality. Thus, the study concludes that both inclusive growth and financial sector development are too weak to cause each other in most SSA’s countries since bi-directional causality is nonexistent and recommends that policymakers in respective SSA sub-regions and countries should implement massive inclusive growth strategies and promotes relevant financial innovations, reforms, and efficiency in financial inclusion across the region.

This study examines the direction of causality between financial sector development and inclusive growth using panel data of 32 countries in sub-Saharan Africa (SSA) between 2000 and 2019. Findings from Dumitrescu - Hurlin panel causality test revealed that the panel of SSA’s countries and two other sub-regions (West and South African sub-regions) indicate unidirectional causality while the other two (East and Central African) show evidence of no causality. Likewise, this study observes some variations at the country-specific level where 24 out of the 32 countries selected displayed evidence of no causality, and 8 countries demonstrated evidence of unidirectional causality. Thus, the study concludes that both inclusive growth and financial sector development are too weak to cause each other in most SSA’s countries since bi-directional causality is nonexistent and recommends that policymakers in respective SSA sub-regions and countries should implement massive inclusive growth strategies and promotes relevant financial innovations, reforms, and efficiency in financial inclusion across the region.

This study re-visits the ongoing debate on the savings-growth nexus in developing countries, taking into account the significance of the unique characteristics of the pre- and post-democratic dispensations in Nigeria as a case study. A multivariate VECM Causality test for pre- and post-democracy samples were carried out using data covering the period of 19 years (1981 to 1999) for pre- democracy and 20 years (2000 to 2019) for post-democracy era. In the short run, we discovered that there was no significant causal relationship between savings and growth during the pre-democracy period but there exists a unidirectional causality running from savings to growth in the post-democracy period. However, we found a bidirectional causal relationship between savings and growth in the long run for both pre-and post-democracy periods. Therefore, this study concluded that savings causes economic growth in post democracy period in line with Mill–Marshall–Solow school of thought (short-run period) while both savings and growth reinforce each other in the long-run for both periods. Thus, we recommend that Nigerian policy-makers and government should embark on monetary policies that would increase deposit rates to encourage more savings so as to mobilize funds from surplus-side to the deficit-side of the economy for productive investments and at the same time come up with a regulation that would reduce off-balance sheet activities of most financial institutions in the country.

This study re-visits the ongoing debate on the savings-growth nexus in developing countries, taking into account the significance of the unique characteristics of the pre- and post-democratic dispensations in Nigeria as a case study. A multivariate VECM Causality test for pre- and postdemocracy samples were carried out using data covering the period of 19 years (1981 to 1999) for pre- democracy and 20 years (2000 to 2019) for post-democracy era. In the short run, we discovered that there was no significant causal relationship between savings and growth during the pre-democracy period but there exists a unidirectional causality running from savings to growth in the post-democracy period. However, we found a bidirectional causal relationship between savings and growth in the long run for both pre-and post-democracy periods. Therefore, this study concluded that savings causes economic growth in post democracy period in line with Mill��� Marshall���Solow school of thought (short-run period) while both savings and growth reinforce each other in the long-run for both periods. Thus, we recommend that Nigerian policy-makers and government should embark on monetary policies that would increase deposit rates to encourage more savings so as to mobilize funds from surplus-side to the deficit-side of the economy for productive investments and at the same time come up with a regulation that would reduce offbalance sheet activities of most financial institutions in the country.

This study investigated the asymmetric effect of positive and negative monetary policy shocks on output and prices in Nigeria using interest rate shocks. This was with the view to ascertaining the impact of monetary policy on sustainable output growth and price stability in Nigeria from 1986 to 2016. Quarterly secondary data from 1986: Q1 to 2016:Q4 on output (GDP), interest rate, money supply, inflation rate, investment and real effective exchange rate were sourced from Central Bank of Nigeria (CBN) Statistical Bulletin, 2016 and World Development Indicator (WDI), 2018. Data collected were analyzed using Non-linear Autoregressive Distributive Lag (NARDL) econometric techniques. The results showed that in the short run, negative shocks have more significant effects (2.7%) on output than positive shocks (1.2%) but the effects of positive and negative monetary policy shocks do not have significant effects on price level; while in the long run, positive shocks have more significant effects than the negative shocks on both output (3.1% and 1.9%) and prices (-51.1%and 45.1%). The study concluded that monetary policy shocks have asymmetric effects on output and prices in Nigeria both in the short and long run period. Keywords: Asymmetric, Policy Shocks, Positive, Negative, Output, Prices