The Dynamic Impacts of Idle Cash on Economic Growth in Nigeria (1985 – 2018)

  • Musa Abdullahi Sakanko Assistant Lecturer, Department of Economics, Faculty of Social Sciences, University of Jos, Plateau State, Nigeria
  • Abubakar Ijoko Assistant Lecturer, Department of Economics, University of Army Biu, Borno State, Nigeria
  • Inuwa Yaqoub Mohammed Senior Education Officer, Bauchi State Ministry of Education, Bauchi State, Nigeria
Keywords: ARDL model, descriptive, economic growth, idle cash

Abstract

The study investigated the dynamic effect of idle cash on economic growth in Nigeria from 1985 to 2018 employing a mixed methodology.  The qualitative result revealed that political affluence, social status, treasury single account, asset declaration, biometric verification number, whistle-blower programme, and the empowering operation of economic and financial crime commission for anti-corruption crusade determine idle cash in Nigeria. On the other hand, the quantitative result revealed that idle cash has an inverse effect on economic growth in the short run. However, the long run result revealed a positive, and statistically significant effect on the economic growth, and it was found that idle cash Granger causes economic growth. We recommend that the government should provide a policy regulation framework that will regulate, track and checkmate the superfluousness of idle cash.

Published
2019-12-04
How to Cite
Sakanko, M., Ijoko, A., & Mohammed, I. (2019). The Dynamic Impacts of Idle Cash on Economic Growth in Nigeria (1985 – 2018). Empirical Economic Review, 2(2), 33-52. https://doi.org/10.29145/eer/22/020103
Section
Articles