An Examination of the Impact of Net Capital Inflows on the Financial Sector of the Nigerian Economy
International Journal of Humanities, Art and Social Studies (IJHAS) http://airccse.com/ijhas/index.html Article Title: An Examination of the Impact of Net Capital Inflows on the Financial Sector of the Nigerian Economy ABSTRACT: This study investigated the impact of net capital inflows on financial sector of the Nigerian economy between 1986 to 2015. Annual secondary time series data obtained from the database of World Bank Development Indicators (WBDI) were employed with a VAR econometric approach for the study. Empirical results emanating from this work revealed the presence of a unique long run relationship among the variables specified in the model. The adjustment parameter was significant and appropriately signed. This shows that economic growth and other key macroeconomic variables in Nigeria adjusts fairly, though sluggishly to financial sector development within the period referenced. Evidence from granger causality testing showed that foreign capital...