Beyond Access: Digital Payment Activity, Productive Investment and Economic Growth in Nigeria (African Development Finance Journal)
Key number
0.020% % real GDP increase per 1% POS transaction increase
Long-run POS impact on real GDP p.19
Summary
- The study analyzes quarterly time-series macroeconomic data for Nigeria covering 2010Q1 to 2024Q4, comprising up to 60 observations.p.8
- Descriptive statistics indicate that across 60 observations, ATM transactions averaged approximately 201 million while cheque transactions averaged 4.19 million.p.16
- Long-run estimates show that a 1% increase in POS transaction volume is associated with a 0.041% increase in productive investment.p.18
- A 1% increase in POS transaction volume is associated with a 0.020% increase in real GDP in the long run.p.19
- Gross fixed capital formation demonstrates a positive long-run relationship where a 1% increase corresponds to a 0.258% increase in real GDP.p.19
Key insights
- Point-of-sale transaction volume exhibits a positive and statistically significant long-run relationship with productive investment in Nigeria.p.18
- Inflation displays a statistically significant negative long-run association with productive investment.p.18
- Both point-of-sale transaction volume and gross fixed capital formation are positively and significantly related to real economic output in the long run.p.19
- Trade openness shows a statistically significant negative long-run relationship with real GDP.p.20
- Mobile payment transaction volume exhibits a positive and statistically significant long-run relationship with productive investment, supporting baseline results.p.22
- Internet payment volume shows a positive but statistically insignificant long-run coefficient, indicating partial robustness across digital payment channels.p.21
Topics and entities
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