Effect of Monetary Policy on Economic Growth in Nigeria: An Empirical Investigation

Ufoeze, Lawrence Olisaemeka; Odimgbe, J. C; Ezeabalisi, V. N.; Alajekwu, Udoka Bernard

doi:10.26458/1815

Cited by 41 publications

(43 citation statements)

References 3 publications

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“…The broad money supply (M2) as a monetary policy instrument increased economic growth by 91% and was also highly statistically significant. This finding was in consonance with other studies like Ufoeze, Odimgbe, Ezeabalisi and Alajekwu (2018) and that Inam and Ime (2017) which revealed that money supply was a much more viable monetary policy instrument, in comparison to the MPR. The coefficient of inflation rate which represented the control variable in the model followed apriori expectation, as it retarded economic growth by 17%.…”

Section: Ardl Long-run Resultssupporting

confidence: 91%

Monetary Policy and Economic Growth in Nigeria: An Autoregressive Distributed Lag (ARDL) Analysis.

Ibrahim¹

2019

ASSRJ

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The study assessed the impact of monetary policy on economic growth in Nigeria. Three objectives guided the study. It employed quarterly data spanning 1986:Q1-2018:Q4, and used the Autoregressive Distributed Lag (ARDL) model, and the Granger causality test to carry out its empirical analysis and achieving its objectives. Findings from the study revealed that the monetary policy rate (MPR) had a positive impact on economic growth, but it was however not statistically significant. The broad money supply (M2) as a monetary policy instrument had a much more positive and highly statistically significant impact on economic growth in Nigeria. As such, the study recommended that the CBN should embark on a comprehensive monitoring of monetary instruments and aggregates and place less emphasis on inflation targeting (IT) alone. It is important to use other instruments which the central bank can control effectively like the broad money supply (M2) as it is more effective on the economy.

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Section: Ardl Long-run Resultssupporting

confidence: 91%

Monetary Policy and Economic Growth in Nigeria: An Autoregressive Distributed Lag (ARDL) Analysis.

Ibrahim¹

2019

ASSRJ

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“…money supply increased concurrently with domestic credit over the last five years from 2015 to 2019 (KNBS, 2019) and this supports empirical evidence that monetary policy, which has an effect on bank liquidity, is a key determinant of bank credit(Akinlo & Oni, 2015;Ufoeze, Odimgbe, Ezeabalisi, & Alajekwu, 2018).…”

supporting

confidence: 62%

Effect of Interest Rates on Private Sector Debt in Kenya

Kibunja¹,

Fatoki²

2020

JBTP

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This study sought to examine the effect of interest rates on domestic private sector debt in Kenya over the 30 year period from 1990 to 2019. The dependent variable was private sector domestic debt, the independent variable was commercial bank weighted average lending rate while the control variables were annual GDP growth, extended broad money (M3) and annual USD-KES exchange rate. Using the Prais-Winstein estimator model, the regression model findings were commercial bank lending rate had an insignificant relationship with domestic debt at 95% confidence level but significant at 90% level while money supply had a negative and significant relationship with domestic debt. The study noted predominance of the banking sector in the financial sector and identified the need of a well-developed corporate debt market.

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“…This was consistent with Srithilat and Sun (2017) and Perera (2016). However, Ufoeze (2018) found that the monetary policy rate and the interest rate have an insignificant positive relationship on economic growth. This was in line with Nyamonga, Sichei, and Mutai (2008), Mutuku and Koech (2014) and Kamaan and Nyamongo (2014).…”

Section: Literature Reviewmentioning

confidence: 99%

The Impacts of Monetary and Fiscal Policies on Economic Growth in Malaysia, Singapore and Thailand

Tan

Azali

Habibullah

et al. 2020

South Asian Journal of Macroeconomics and Public Finance

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This article analyses the impact of monetary and fiscal policies on economic growth in Malaysia, Singapore and Thailand from 1980:Q1 to 2017:Q1. Autoregressive distributed lag (ARDL) approach is employed to determine the long-run relationship. Further, a range of econometric models, such as fully modified least squares method (FMOLS), canonical cointegration regression (CCR) and dynamic ordinary least squares method (DOLS), are applied to check the robustness. The results are stable and robust as all the models yield consistency result. The main findings in this study demonstrate that: (a) interest rate had a negative impact on economic growth in three selected countries. (b) Government spending had a negative impact on economic growth in Malaysia and Singapore, but had a positive impact in Thailand. (c) Monetary policy is more effective in Malaysia and Singapore, while fiscal policy is more effective in Thailand. JEL Classification: E52, E58, E62, C01

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Effect of Monetary Policy on Economic Growth in Nigeria: An Empirical Investigation

Abstract: The study investigated

Cited by 41 publications

References 3 publications

Monetary Policy and Economic Growth in Nigeria: An Autoregressive Distributed Lag (ARDL) Analysis.

Monetary Policy and Economic Growth in Nigeria: An Autoregressive Distributed Lag (ARDL) Analysis.

Effect of Interest Rates on Private Sector Debt in Kenya

The Impacts of Monetary and Fiscal Policies on Economic Growth in Malaysia, Singapore and Thailand

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