MONETARY POLICY OPERATION IN NIGERIA FROM 1980 TO 2016.
Journal Title: International Journal of Advanced Research (IJAR) - Year 2018, Vol 6, Issue 10
Abstract
The study examines monetary policy operations and economic growth in Nigeria from 1980 to 2013. The purpose is to expose the impact of monetary policy operations on Nigeria?s economic growth. The data for the study were sourced from CBN statistical bulletin. The econometric methods of OLS, Co-integration and Error Correction Mechanism (ECM) were employed as the analytical tools. The result of the parsimonious ECM shows that the overall model is satisfactory given the coefficient of determination of 53 percent and f-statistics of 2.150790. In addition, the variables of monetary policy (proxied by exchange rate, interest rate and money supply) are rightly signed. However, it was discovered that out of the explanatory variables, only interest rate was statistically significant at 5% level of significance in stimulating economic growth in Nigeria. Furthermore, the long run dynamic result also shows that there exists a long-run relationship or equilibrium among the variables. This is because the coefficient of ECM is rightly signed (that is negative) but statistically insignificant. Meaning that, the short run dynamics adjust to long run equilibrium relationship. Based on the findings, the study therefore suggests that monetary authority should review her exchange rate, interest rate and money supply policies so that the country?s capability to produce the goods and services its people want will be increased. Moreover, government/monetary authorities should promote activities in all the sectors of the economy particularly the agricultural and industrial sector to enhance output and reduce the rate of dependence on foreign goods. There should be co-operation between the monetary and fiscal authorities to ensure smooth co-ordination and consistency in monetary and fiscal pursuits.
Authors and Affiliations
Awortu . , Timi C.
Keywords
Related Articles
- EP ID EP409598
- DOI 10.21474/IJAR01/7831
- Views 55
- Downloads 0
THE EFFECTS OF THE OLIVE OIL COMPONENTS ON REDUCING THE CARDIOVASCULAR COMPLICATIONS.
Background: Cardiovascular diseases are responsible for more than 7 million deaths worldwide. Cardiovascular risk factors such as hypertension, diabetes and smoking, contribute to the onset of the inflammatory process in...
TO FIND OUT PREVALENCE OF MUSCULOSKELETAL PAIN BY CARRYING HEAVY HANDBAGS AMONG COLLEGE GIRLS AND ITS RELATION WITH THEIR BMI.
Background: Students aged 18-30yrs undergo rapid musculoskeletal development and an application of external forces (handbags) cause musculoskeletal disorders. Musculoskeletal pain is one of the most important pains among...
POOR FLEXURAL REINFORCEMENT PLACEMENT FACTOR ON THE PERFORMANCE OF CONSTRUCTED DRAINAGE SYSTEM.
Constructional implementation of good structural design that will translate to the require safety and design economy needs good workmanship. Previous structured studies showed that poor workmanship quality would signific...
ANALYSIS OF INNOVATIVE STRATEGIES INFLUENCE ON BUSINESS GROWTH OF SMES IN NAIROBI COUNTY, KENYA: CASE OF SMES IN GIKOMBA MARKET.
In modern societies the role of SMEs in economic development, innovation, and gross domestic product (GDP) is evident. The Government of Kenya through Vision 2030 has tried to put an enabling environment to help nurture...
CHARACTERIZATION OF SEED PROTEIN OF SOME INDIGENOUS RICE (ORYZA SATIVA L.) CULTIVARS OF ASSAM.
Among the plant protein sources the seed play an important role owing to the presence of large amount of storage protein. Rice has the highest nutritional value among the cereal protein due to the high content of essenti...