An Analysis of Long and Short Run Relationship between Economic Growth and Entrepreneurship Financing in Pre and Post Deregulated Nigerian Economy (1962-2010)

Abstract

The aim of this study is to investigate the short and long run relationship between entrepreneurship financing (from financial intermediation) and economic growth during the pre-deregulation period and aggregate period in Nigeria. This enables us assess the impact of deregulation on economic growth via entrepreneurship financing in Nigeria. Johansen co-integration method with vector error correction and Granger causality technique were adopted. The results reveal that entrepreneurship financing during the above periods both in short and long run period did not improve economic growth in Nigeria. Financial institutions as well as government should monitor entrepreneurs when loans are granted to ensure they are invested on economic activity to boost economic growth in Nigeria.