Finance-growth nexus in Cote D'Ivoire and Nigeria: Does the proxy of financial development matter?

This study examines the finance-growth nexus in cote d'ivoire and nigeria using different proxies of measuring financial development to ascertain whether the finance-growth nexus is sensitive to financial development proxies. findings reveal that a co-integration relationship exists between financial development and economic growth in both countries. while supply-leading hypothesis is supported in cote d'ivoire,the feedback hypothesis is supported in nigeria. further evidence indicates that the finance-growth nexus is sensitive to the proxies used to measure financial development. the implication of this study is that financial development promotes economic growth. hence,countries should implement policies and reforms that favour the advancement of those proxies that accelerate growth in order to achieve sustainable economic growth. © universiti putra malaysia press.