Monetary policy transmission channels and the performance of the real sectors in selected sub-Saharan African countries: a system-GMM approach
Abstract This study investigated the impact of monetary policy channels on the real sector performance in selected sub-Saharan African countries. This study covers the period 1990 to 2020. The broad objective of the study was to examine the impact of monetary policy transmission channels on the real...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2023-10-01
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| Series: | Future Business Journal |
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| Online Access: | https://doi.org/10.1186/s43093-023-00226-z |
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| author | Ifeoma Florence Onaga Augustine C. Arize Josaphat U. J Onwumere Ebere Ume Kalu |
| author_facet | Ifeoma Florence Onaga Augustine C. Arize Josaphat U. J Onwumere Ebere Ume Kalu |
| author_sort | Ifeoma Florence Onaga |
| collection | DOAJ |
| description | Abstract This study investigated the impact of monetary policy channels on the real sector performance in selected sub-Saharan African countries. This study covers the period 1990 to 2020. The broad objective of the study was to examine the impact of monetary policy transmission channels on the real sectors of selected sub-Saharan African countries within the period, 1990–2020. Using the system generalized method of moments (sys-GMMs) amidst other pre-estimation and post-estimation tests, it was discovered that credit and exchange rate channels positively drove agricultural productivity, while interest rate channel exerted a negatively significant influence. Conversely, credit and exchange rate channels were found to negatively affect manufacturing, while interest rate channels had no significant impact on the manufacturing sector. Given the overwhelming impact of monetary policy channels on both the agricultural and manufacturing sectors of the SSA economies, it is recommended that effective monetary policy framework be put in place to continually create positive transmission effect on the real and productive sectors of the economy. |
| format | Article |
| id | doaj-art-9782f36f42834482b0bd0aed9da4302a |
| institution | OA Journals |
| issn | 2314-7210 |
| language | English |
| publishDate | 2023-10-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Future Business Journal |
| spelling | doaj-art-9782f36f42834482b0bd0aed9da4302a2025-08-20T01:57:27ZengSpringerOpenFuture Business Journal2314-72102023-10-019111510.1186/s43093-023-00226-zMonetary policy transmission channels and the performance of the real sectors in selected sub-Saharan African countries: a system-GMM approachIfeoma Florence Onaga0Augustine C. Arize1Josaphat U. J Onwumere2Ebere Ume Kalu3Department of Banking and Finance, University of NigeriaDepartment of Economics and StatisticsDepartment of Banking and Finance, University of NigeriaDepartment of Banking and Finance, University of NigeriaAbstract This study investigated the impact of monetary policy channels on the real sector performance in selected sub-Saharan African countries. This study covers the period 1990 to 2020. The broad objective of the study was to examine the impact of monetary policy transmission channels on the real sectors of selected sub-Saharan African countries within the period, 1990–2020. Using the system generalized method of moments (sys-GMMs) amidst other pre-estimation and post-estimation tests, it was discovered that credit and exchange rate channels positively drove agricultural productivity, while interest rate channel exerted a negatively significant influence. Conversely, credit and exchange rate channels were found to negatively affect manufacturing, while interest rate channels had no significant impact on the manufacturing sector. Given the overwhelming impact of monetary policy channels on both the agricultural and manufacturing sectors of the SSA economies, it is recommended that effective monetary policy framework be put in place to continually create positive transmission effect on the real and productive sectors of the economy.https://doi.org/10.1186/s43093-023-00226-zMonetary policyInterest rate channelsCredit channelsExchange rate channelsSub-Saharan Africa and system GMM |
| spellingShingle | Ifeoma Florence Onaga Augustine C. Arize Josaphat U. J Onwumere Ebere Ume Kalu Monetary policy transmission channels and the performance of the real sectors in selected sub-Saharan African countries: a system-GMM approach Future Business Journal Monetary policy Interest rate channels Credit channels Exchange rate channels Sub-Saharan Africa and system GMM |
| title | Monetary policy transmission channels and the performance of the real sectors in selected sub-Saharan African countries: a system-GMM approach |
| title_full | Monetary policy transmission channels and the performance of the real sectors in selected sub-Saharan African countries: a system-GMM approach |
| title_fullStr | Monetary policy transmission channels and the performance of the real sectors in selected sub-Saharan African countries: a system-GMM approach |
| title_full_unstemmed | Monetary policy transmission channels and the performance of the real sectors in selected sub-Saharan African countries: a system-GMM approach |
| title_short | Monetary policy transmission channels and the performance of the real sectors in selected sub-Saharan African countries: a system-GMM approach |
| title_sort | monetary policy transmission channels and the performance of the real sectors in selected sub saharan african countries a system gmm approach |
| topic | Monetary policy Interest rate channels Credit channels Exchange rate channels Sub-Saharan Africa and system GMM |
| url | https://doi.org/10.1186/s43093-023-00226-z |
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