Bank competition and economic growth : evidence from Nigeria

摘要: The relationship between financial development and economic growth has been subjected to several debates by various authors. It argued that a competitive efficient sector is prerequisite for development. objective of this study therefore examine the bank competition in Nigeria period 1986 - 2012 using vector error correction mechanism. This anchored on fact there are conflicting empirical arguments (positive or negative relationship) effects growth. Also, new reform introduced, as well increase cost borrowing Nigerian banking industry motivates further strengthen examination its effect transition economy like Nigeria. Bank was measured concentration ratio. Johansen cointegration test performed existence long run model. result showed first-order positive both short (as shown Vector model) suggested likelihood ratio test). finding consistent with theoretical prediction higher results, average, lower firms. strengthening competitiveness efficiency would lead improved However, gains likely be realized run, only if evenly distribution market share opposed present situation where majorly three banks dominate take larger industry.