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Institutional Quality, Financial Inclusion And Inclusive Growth: Causality Evidence From Nigeria, G. O. Olanrewaju, S. A. Tella, B. A. Adesoye

Economic and Financial Review

The study examines the causal interactions among the institutional, financial and inclusive growth variables by employing Toda-Yamamoto (TY) Granger non-causality test within the augmented VAR framework. Annual time series, data from 1998 to 2017, were used. The TY analysis showed that all the variables, with the exception of financial inclusion index, Granger-caused inclusive growth, but without any evidence of feedback. However, a bidirectional causal relationship was found between inclusive finance and the interaction of institutional quality and financial inclusion. Thus, the null hypothesis of block exogeneity can be refuted when real GDP per person employed (RGDPE) is taken as the …