theoretical

Abstract The objective of the study is to examine empirically the impact of financial intermediation on the real sector of the Nigerian economy with the aim of determining the impact of financial intermediation on the real sector growth. Both theoretical and econometric analysis are used in this study to examine the impact of financial intermediation on the real sector growth; using real GDP growth rate as the dependent variable and credits to private sector (CPS), average manufacturing capacity utilization (AMCU) and inflation rate (INFR) as independent variables from 1980-2012. The study employs time-series methods of unit root test, co-integration test and vector error correction (VEC) model. The study establishes that credit to private sector contributes significantly to real sector growth in Nigeria. The study also establishes that both...