Education
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO STUDY Economic development has been defined as the process whereby the level of national production (that is national income) or per capita income, increase over a period of time (Nwankwo and Ejekeme, 2007: 34). Specifically, economic development involves on increase in the size of the secondary sector of the economy and a corresponding decrease in the realistic importance of the primary sector. In a more conventional approach, economic development is defined as economic growth plus change. The changes here being interpreted as the achievement of better living conditions and an expanded rate of opportunities in work and leisure for the poor people. It involves more than just growth (Ogbonna, 2000: 23). This means that a sustained increase in total national income per head of population which involves changes such as improved performance of factors of production development of institution etc. The role of capital in economic development can therefore be appreciated as it provides the impetus for the effective and efficient combination of factors of production to ensure sustainable economic growth (Babalola and Adegbite, 2004:1). Finance companies as an agent of financial intermediation have in recent times been reorganized to serve the purpose of capital formation and mobilization. Finance companies are institutions whose activities involve holding money balance and borrowed money from individual and other institutions with the aim of creating loans (Ogbonna, 2000:1) Finance companies also create room for channeling funds from lenders to borrowers. Generally, finance companies mobilize fund from the surplus sector of the economy and channel it to the deficit sector of the economy. Commercial banks traditionally lend to medium and large enterprises which are judged to be credit worthy (Anyanwu, 2004: 4). They avoid doing business with the poor and their micro-enterprises because the associated cost and risks
INTRODUCTION
1.1 BACKGROUND TO STUDY Economic development has been defined as the process whereby the level of national production (that is national income) or per capita income, increase over a period of time (Nwankwo and Ejekeme, 2007: 34). Specifically, economic development involves on increase in the size of the secondary sector of the economy and a corresponding decrease in the realistic importance of the primary sector. In a more conventional approach, economic development is defined as economic growth plus change. The changes here being interpreted as the achievement of better living conditions and an expanded rate of opportunities in work and leisure for the poor people. It involves more than just growth (Ogbonna, 2000: 23). This means that a sustained increase in total national income per head of population which involves changes such as improved performance of factors of production development of institution etc. The role of capital in economic development can therefore be appreciated as it provides the impetus for the effective and efficient combination of factors of production to ensure sustainable economic growth (Babalola and Adegbite, 2004:1). Finance companies as an agent of financial intermediation have in recent times been reorganized to serve the purpose of capital formation and mobilization. Finance companies are institutions whose activities involve holding money balance and borrowed money from individual and other institutions with the aim of creating loans (Ogbonna, 2000:1) Finance companies also create room for channeling funds from lenders to borrowers. Generally, finance companies mobilize fund from the surplus sector of the economy and channel it to the deficit sector of the economy. Commercial banks traditionally lend to medium and large enterprises which are judged to be credit worthy (Anyanwu, 2004: 4). They avoid doing business with the poor and their micro-enterprises because the associated cost and risks
References: Baridam, D. (1990): Research Method in Administration Science. Port Harcourt: Belk Publisher Ltd. Fisher, R. A. (1954) Statistical Methods for Research Workers Oliver and Boyd: 12th edition. Freedman, D. A. (2005) Statistical Method: Theory and Practice. Cambridge: Cambridge University Press. Koutsoyannis, A. (1977): Theory of Econometrics. An Introductory Exposition of Econometrics Method Hampshire: Macmillan Press Ltd. Okpara, G. C. (1998): Method of Data Analysis for Researchers. A Statistical and Econometric Approach Abakaliki: Willy Rose Publishers. “Regression Analysis” retrieved from www.wikipedia.org on 8th October, 2010. |2008 |47,092.1 |205,501.6 |102,029.8 |23,842,126.2 | Source: CBN Statistical Bulletin and Annual Report, 2008.