IMPACT OF CREDIT, INTEREST RATE AND INFLATION ON SMALL AND MEDIUM ENTERPRISES PRODUCTIVITY IN NIGERIA

Adamu Yusuf, Dr. Ogu Musa Akwe, Dr. Bashir Umar Farouq, Lawal Muhammad Nasiru, Reuben Valati
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Abstract

This study sought to evaluate the impact of credit, interest rate and inflation on Small and Medium Enterprises Productivity in Nigeria, using annual time series data from 1986-2023. The data for the study was sourced from the World Development Indicator (WDI) and the Central Bank of Nigeria (CBN) statistical bulletin. The data collected were gross domestic product (GDP) which is the dependent variable while commercial bank total credit to private sector (CPS), small and medium enterprises contribution to GDP (SMEC), inflation rate (INFL) and interest rate (INT) are the independent variables. Descriptive, inferential statistics and Error Correction Model (ECM) were used to test the long run relationship of the variables. The results of the regression show that credit to private sector and small and medium enterprises contribution to gross domestic product is positive and significant to economic growth. The results further revealed that inflation rate and interest rate have a negative and insignificant effect on gross domestic product. The study recommends that government should put more efforts to curb inflation to give more confident to investors and should implement measures (low interest rates) that would broaden the borrowing base to improve financial capacity of SMEs, thus lead to an increase in the contribution of SMEs to nations GDP. KEYWORD: SME, Interest rate, Inflation, GDP.
信贷、利率和通货膨胀对尼日利亚中小企业生产力的影响
本研究试图利用 1986-2023 年的年度时间序列数据,评估信贷、利率和通货膨胀对尼日利亚中小型企业生产力的影响。研究数据来自世界发展指标(WDI)和尼日利亚中央银行(CBN)统计公报。收集的数据中,国内生产总值(GDP)是因变量,商业银行对私营部门的信贷总额(CPS)、中小企业对 GDP 的贡献(SMEC)、通货膨胀率(INFL)和利率(INT)是自变量。使用描述性统计、推论性统计和误差修正模型(ECM)来检验变量之间的长期关系。回归结果表明,私营部门信贷和中小型企业对国内生产总值的贡献对经济增长具有正向和显著的影响。结果进一步显示,通货膨胀率和利率对国内生产总值的影响为负且不显著。研究建议,政府应加大力度抑制通货膨胀,让投资者更有信心,并应采取措施(低利率)扩大借贷基础,提高中小企业的财务能力,从而提高中小企业对国家国内生产总值的贡献。关键词: 中小企业 利率 通货膨胀 国内生产总值
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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