EFFECT OF MONETARY POLICY ON ECONOMIC GROWTH IN NIGERIA (1990-2021)
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Date
2022-06-12
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INTERNATIONAL JOURNAL OF ADVANCED RESEARCH IN MULTIDISCIPLINARY STUDIES
Abstract
Many countries, especially developing ones, prioritize RGDP growth. Economic growth reduces poverty
and improves welfare, so its determinants must be identified. Despite studies on economic growth's
determinants, Nigeria's economy remains stagnant. This narrative inspired the present study, which
examined how monetary policy affects Nigerian economic growth. Thus, this study examined Nigeria's
economic growth and monetary policy. The study used 1990–2021 time series data. The Augmented
Dickey-Fuller test and ARDL bond test were used to test the data's stationary nature and long-run
relationships. The short-run regression conducted using the ARDL regression method showed that
monetary policy is an important determinant of economic growth in Nigeria. The two indicators of
monetary policy used (Monetary Policy Rate, MPR, and Money Growth Rate, M2) exert a significant
impact on economic growth in Nigeria. Based on the findings, this study concludes that monetary policies
significantly affect economic growth in Nigeria. It thus recommends that policymakers embark on a
renewed commitment to the conduct of monetary policy in such a way as to increase economic growth in
Nigeria
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Citation
Sulaimon, T. T. (2022). Effect of monetary policy on economic growth in Nigeria (1990–2021). International Journal of Advanced Research in Multidisciplinary Studies, 2(1), 167.