Original Research Article

THE NEXUS BETWEEN FINANCIAL DEEPENING AND ECONOMIC GROWTH IN NIGERIA: ARDL & CAUSALITY APPROACH

NDUKWE ORJI DIBIA

Journal of Economics and Trade, Volume 2, Issue 2, Page 50-65

This paper examines the dynamic causal relationship between financial deepening, economic growth, and four other macroeconomic variables in Nigeria for the period 1981–2014 using principal component analysis for the construction of the financial development indices, Auto-regressive Distributed Lag (ARDL) and the Granger causality approach. Our results are in three folds: First, the causal effect of stock market development on economic growth is found to be positively significant in the long-run and short-run but bank sector development is found to be positively insignificant suggesting the weakness of financial intermediary sector in resource mobilisation and allocation in Nigeria. Second, this study find no causality running from economic growth to financial development in both at the long run and short run positions. Third, the causal effect of macroeconomic variables on finance-growth nexus is found to be uni-directional in the long-run, suggesting that crude oil price and government expenditure are the key driver of long-term development of the Nigerian financial sector and as such among the underlying factors that determine the amount of economic activities passing through the Nigerian financial sector. The policy recommendation is to make banking sector more accessible to enhance financial deepening and indeed a policy that will encourage diversification of the economy rather than solely dependence on oil revenue.

Original Research Article

CUSTOMER SERVICE DELIVERY AND SUSTAINABILITY OF COMMERCIAL BANKS IN CAMEROON

MBU DANIEL TAMBI, ELIZABETH LUM WANCHIA

Journal of Economics and Trade, Volume 2, Issue 2, Page 66-80

This study attempts to carry out a comprehensive analysis on the theme: Customer Service Delivery and the Sustainability of Commercial Banks in Cameroon: The case of Union Bank of Cameroon PLC. The objectives targeted were to: determine the socio-economic characteristics of UBC customers, analyze the nature of customer service delivery practice in Union Bank of Cameroon, examine the effect of customer service delivery on the sustainability of the bank, discuss the constraints faced by the Union Bank of Cameroon in customers service deliver and derive policy implication to improve the customer service – bank sustainability relationship. Methodologically, we used multiple correspondence analyses to create a customer service delivery indicator and a probit model for regression estimates.  Primary data were collected using purposive sampling with 153 questionnaires administered amongst bank customers.  The results show that customer service delivery strongly correlates with bank sustainability while results by nature of services reveal that customers of Union Bank of Cameroon appreciate more account operation services, security and confidentiality of customer’s information, staff attitude and location of the bank.  As concerning bank’s constraints, we observed that policies related to loan, confidentiality, security, advertisement and networking are the major challenges of the bank. Therefore, we recommend that financial authorities operating in the banking sector and decision makers should create policies geared towards customer satisfaction.  This is a major step towards financial stability and growth of financial institutions.