ISSN – PRINT:2756-4495 | ONLINE: 2756-4487
Volume 02, Issue 01– 2022
Okumoko, Tubo Pearce,
Several structural changes have been made in the banking system in the country. These include the establishment of various programs and policies designed to enhance the intermediation function of banks. The study focused on the link between the growth of the manufacturing sub-sector and the loans made by banks. The research work explored stochastic properties of the data using Phillip-Perron and ADF unit root test and found that all the variables are integrated at order one before adopting Johansen rank based co-integration test. Based on the result, it was revealed that there is a long-run connection between the variables, which is required for estimating an error correction model. It was discovered that commercial banks’ credit is able to encourage manufacturing sector performance and that interest rates do not inhibit manufacturing output, and it was suggested that more credit facilities be made available to the manufacturing sector, among other things.
Keywords: Manufacturing sector, Banking sector reforms, credits, Interest rate, cointegration