<abstract xmlns="http://www.w3.org/1999/xhtml"><p>With so many countries of the world now open to global capital and trade, this study identifies whether financial and trade openness contribute to the development of Nigeria’s financial system by considering both financial depth and access to finance indicators. To achieve this objective, we applied the Simultaneous Openness Hypothesis as our theoretical framework and the Generalized Method of Moments (GMM) as our estimation method. Our findings reveal that opening trade while neglecting capital (vice versa) may be detrimental to the development of Nigeria financial system. In view of this evidence, we recommend that the simultaneous opening of trade and finance is a more guaranteed way of ensuring improved financial development in Nigeria.</p></abstract>

With so many countries of the world now open to global capital and trade, this study identifies whether financial and trade openness contribute to the development of Nigeria’s financial system by considering both financial depth and access to finance indicators. To achieve this objective, we applied the Simultaneous Openness Hypothesis as our theoretical framework and the Generalized Method of Moments (GMM) as our estimation method. Our findings reveal that opening trade while neglecting capital (vice versa) may be detrimental to the development of Nigeria financial system. In view of this evidence, we recommend that the simultaneous opening of trade and finance is a more guaranteed way of ensuring improved financial development in Nigeria.

Do Financial and Trade Openness Lead to Financial Sector Development in Nigeria?

Zagreb International Review of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Do Financial and Trade Openness Lead to Financial Sector Development in Nigeria?"}

With so many countries of the world now open to global capital and trade, this study identifies whether financial and trade openness contribute to the...

Do Financial and Trade Openness Lead to Financial Sector Development in Nigeria?

Published Online: Nov 19, 2016

Page range: 57 - 68

DOI: https://doi.org/10.1515/zireb-2016-0008

Keywords
Financial Openness, Trade Openness, Financial Development, Financial Institutions, Financial Markets

© 2016 Abayomi Toyin Onanuga et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Do Financial and Trade Openness Lead to Financial Sector Development in Nigeria?

Published Online: Nov 19, 2016

Page range: 57 - 68

DOI: https://doi.org/10.1515/zireb-2016-0008

KeywordsFinancial Openness, Trade Openness, Financial Development, Financial Institutions, Financial Markets

© 2016 Abayomi Toyin Onanuga et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Financial Openness, Trade Openness, Financial Development, Financial Institutions, Financial Markets