Indirect Monetary Policy Instruments and Poverty Reduction in Nigeria: An Empirical Evidence from Time Series Data

Goshit, Gideon G.; Longduut, Thaddeaus D.

doi:10.6007/ijarbss/v6-i4/2083

Cited by 6 publications

(5 citation statements)

References 3 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The definition and measurement of poverty has different insinuations on policy-making (Goshit & Longduut, 2016). There are various methods to the definition and measurement of poverty.…”

Section: Measurement Of Povertymentioning

confidence: 99%

The Effects of Fiscal Policy on Poverty Alleviation in Nigeria

ADEDIRAN,

Adewale,

OLADIPO

et al. 2024

Int. J. Res. Publ. Rev.

View full text Add to dashboard Cite

The study empirically investigated the link among fiscal policy and poverty alleviation in Nigeria. A choice of variables such as government expenditure on health, government expenditure on education and tax rate were adopted as fiscal policy tools while exchange rate and inflation rate, were also incorporated as control variables. The ARDL short-run and long-run models were estimated to investigate the dynamic relationships between poverty rate, and the array of independent variables in Nigeria from 1980 to 2021. Data used was sourced from World Development Indicators (WDI) and analyzed using the E-Views software. The augmented Dickey-Fuller (ADF) test and Phillips-Perron (PP) unit root test indicated that some of the variables are stationery and others differenced stationary.The result of the ARDL model estimation revealed that government expenditure on health showed a significant positive coefficient, while ggovernment expenditure on education reflected otherwise. Tax rate showed a significant negative effect on the poverty rate while inflation rate and exchange rate impacted poverty negatively. Based on the results, fiscal policy has contributed to poverty rate decrease but not effectively as government budget seem to miss the target. Thus, this study recommends increase in government expenditure budget as well as proper monitoring of government fiscal policies channelled towards poverty alleviation in Nigeria.

show abstract

“…The definition and measurement of poverty has different insinuations on policy-making (Goshit & Longduut, 2016). There are various methods to the definition and measurement of poverty.…”

Section: Measurement Of Povertymentioning

confidence: 99%

The Effects of Fiscal Policy on Poverty Alleviation in Nigeria

ADEDIRAN,

Adewale,

OLADIPO

et al. 2024

Int. J. Res. Publ. Rev.

View full text Add to dashboard Cite

show abstract

“…One way of doing this is through monetary policy. According to Adenikinju and Olaniyan (2006) and Goshit (2012), an essential component in managing macroeconomic issues is monetary policy. The effectiveness of monetary policy is critical to the country's economic performance economically, hence, monetary policy plays a substantial part in output growth for the development of an economy as well as macroeconomic stability.…”

Section: Conceptual Review Of Related Literaturementioning

confidence: 99%

“…Empirical Review of Literature Goshit (2012) examined indirect monetary policy reforms and their impact on the growth of output in Nigeria from 1986 to 2009. Co-integration and ordinary least squares (OLS) were the methods used.…”

Section: 3mentioning

confidence: 99%

“…It was concluded that Nigeria's economic growth was not significantly determined by the country's monetary policy in the years 1980-2010. Goshit & Longduut (2016) in their study of instruments of indirect Monetary Policy and Nigeria's Poverty Reduction employed multiple regressions model in analyzing data which covered the years 1986 to 2012. Variables used were central bank discount rate (CBDR), interest rate (INTR), bank reserve requirement (BARR), bank credit to economy (BSCE), liquidity ratio of banks ((BLOR), supply of money (Ms), rate of unemployment (UNEMPR), balance of payment (BOP), rate of inflation (INFR), and real RGDP.…”

Section: 3mentioning

confidence: 99%

“…The researcher discovered that there exists a literature gap in the literature reviewed in this study. For instance, Goshit and Longduut (2016), while examining instruments of indirect monetary policy and Nigeria's poverty reduction included real gross domestic product, rate of inflation, balance of payment and rate of unemployment as independent variables proxy of indirect monetary policy instruments which are clearly not indirect monetary policy instruments.…”

Section: 3mentioning

confidence: 99%

See 2 more Smart Citations

Indirect Monetary Policy and Performance of the Nigerian Economy

Acha,

Enow

2023

AKSUJACOG

View full text Add to dashboard Cite

This study was carried out to examine the effect of indirect monetary policy on the performance of the Nigerian Economy from 1993 to 2020. In carrying out the investigation, the researchers made use of various parameters which included real gross domestic product (RGDP) as a variable of economic performance, while open market operations (OMO), monetary policy rate (MPR), cash reserve ratio (CRR) and liquidity ratio (LQR) were used as monetary policy variables. In this study, secondary data were used, while the ex-post facto research design was employed. Multiple regression analyses, unit root tests and co-integration tests were the econometric techniques used for data analysis. The Augmented Dickey-Fuller (ADF) test statistic revealed that the time series properties of the variables were stationary at level, first and second differences. The variables were co-integrated with at least three cointegrating equations for the tested hypothesis. The multiple regression analysis results revealed that indirect monetary policy instruments explained approximately 73 per cent, of total variations in RGDP. The individual variables: OMO, MPR, and CRR were statistically significant to changes in RGDP, while LQR was statistically insignificant. The study found a positive relationship between indirect monetary policy and the performance of the Nigerian economy and further concluded that indirect monetary policy contributed positively to the performance of the Nigerian economy within the period under review.

show abstract