Impact of Financial Sector Development on Misery Economic Index in Nigeria: A VAR Approach
DOI:
https://doi.org/10.55677/SSHRB/2025-3050-0505Keywords:
Misery economic index, Financial sector development, Market capitalization, Money supply, Unrestricted VAR.Abstract
Financial sector development is to address myriad of macroeconomic challenges, thus the study explore the impact of financial sector development on misery economic index in Nigeria from 1980 -2023, The specific objectives are to examine the intertwine impact of financial sector development and misery economic index, in addition to shocks and forcast errors of the variables on each other. Annual time series data used, findings revealed that each variable captured in the unrestricted VAR model exert varying degree of contemporaneous effect on each other. The result also shows the presence of shocks over time in cholesky one standard deviation and varying degrees of forecast. Errors. Based on the findings the study recommends for well-coordinated financial sector reforms that will cursion the surge in inflation and unemployment.
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