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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Relevance of Financial Sector Development on Real Sector Productivity: 21st Century Evidence from Nigerian Industrial Sector

Stephen Oluwafemi Adeusi, Olufemi Adewale Aluko

http://dx.doi.org/10.6007/IJARBSS/v5-i6/1661

Open access

This study focuses on the Nigerian industrial sector to examine the relevance of financial sector development on real sector productivity in the 21st century. The model adapts the financial sector development measures used in King and Levine (1993) as predictors of industrial sector production output. Estimating the model with Ordinary Least Square (OLS) method, the study reveals that there is a strong linear relationship between the financial sector and real sector because the coefficient of multiple determinations is relatively high; thus suggesting that financial sector development is crucial for real sector productivity.

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