Monetary Policy Spillovers Through Industrial Growth in Nigeria: A Time Series Analysis
The study examines the impact of switching from direct to indirect monetary policy on industrial growth in Nigeria, using the annual time series data sourced from the Central Bank of Nigeria’s (CBN) statistical bulletin between 1960 and 2015. The study adopts the Autoregressive Distributed Lag (ARDL...
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| Format: | Article |
| Language: | English |
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Riga Technical University Press
2019-01-01
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| Series: | Economics and Business |
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| Online Access: | https://doi.org/10.2478/eb-2019-0007 |
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| author | Shobande Olatunji A. |
| author_facet | Shobande Olatunji A. |
| author_sort | Shobande Olatunji A. |
| collection | DOAJ |
| description | The study examines the impact of switching from direct to indirect monetary policy on industrial growth in Nigeria, using the annual time series data sourced from the Central Bank of Nigeria’s (CBN) statistical bulletin between 1960 and 2015. The study adopts the Autoregressive Distributed Lag (ARDL) bound testing approach developed by Pesaran, Shin and Smith (2001) for estimating the relevant relationships. The result of the long-run estimates shows that domestic credit, interest rate and trade balance have positive impact on industrial output while money supply, inflation and exchange rate have negative impact on industrial growth. The result of the short-run dynamics shows that change in the previous (one and second lagged) periods of indirect monetary policy (interest rate, money supply, domestic credit and exchange rate) and industrial output were negatively related to change in industrial output. The error correction term indicates the speed of adjustment of equilibrium to their long-run position, which was found to be negative and significant. The study recommends that policy makers use both conventional and non-conventional monetary policies to speed up industrial output growth and enhance economic recovery by manipulating the macro-economic fundamentals. |
| format | Article |
| id | doaj-art-d5f61ce3f0a549fe887ef96db895162f |
| institution | DOAJ |
| issn | 1407-7337 2256-0394 |
| language | English |
| publishDate | 2019-01-01 |
| publisher | Riga Technical University Press |
| record_format | Article |
| series | Economics and Business |
| spelling | doaj-art-d5f61ce3f0a549fe887ef96db895162f2025-08-20T02:56:30ZengRiga Technical University PressEconomics and Business1407-73372256-03942019-01-013319411010.2478/eb-2019-0007eb-2019-0007Monetary Policy Spillovers Through Industrial Growth in Nigeria: A Time Series AnalysisShobande Olatunji A.0Business School, University of Aberdeen, Aberdeen, UKThe study examines the impact of switching from direct to indirect monetary policy on industrial growth in Nigeria, using the annual time series data sourced from the Central Bank of Nigeria’s (CBN) statistical bulletin between 1960 and 2015. The study adopts the Autoregressive Distributed Lag (ARDL) bound testing approach developed by Pesaran, Shin and Smith (2001) for estimating the relevant relationships. The result of the long-run estimates shows that domestic credit, interest rate and trade balance have positive impact on industrial output while money supply, inflation and exchange rate have negative impact on industrial growth. The result of the short-run dynamics shows that change in the previous (one and second lagged) periods of indirect monetary policy (interest rate, money supply, domestic credit and exchange rate) and industrial output were negatively related to change in industrial output. The error correction term indicates the speed of adjustment of equilibrium to their long-run position, which was found to be negative and significant. The study recommends that policy makers use both conventional and non-conventional monetary policies to speed up industrial output growth and enhance economic recovery by manipulating the macro-economic fundamentals.https://doi.org/10.2478/eb-2019-0007growthindustrialmacroeconomics and inflationmonetary policyc32e24e52 |
| spellingShingle | Shobande Olatunji A. Monetary Policy Spillovers Through Industrial Growth in Nigeria: A Time Series Analysis Economics and Business growth industrial macroeconomics and inflation monetary policy c32 e24 e52 |
| title | Monetary Policy Spillovers Through Industrial Growth in Nigeria: A Time Series Analysis |
| title_full | Monetary Policy Spillovers Through Industrial Growth in Nigeria: A Time Series Analysis |
| title_fullStr | Monetary Policy Spillovers Through Industrial Growth in Nigeria: A Time Series Analysis |
| title_full_unstemmed | Monetary Policy Spillovers Through Industrial Growth in Nigeria: A Time Series Analysis |
| title_short | Monetary Policy Spillovers Through Industrial Growth in Nigeria: A Time Series Analysis |
| title_sort | monetary policy spillovers through industrial growth in nigeria a time series analysis |
| topic | growth industrial macroeconomics and inflation monetary policy c32 e24 e52 |
| url | https://doi.org/10.2478/eb-2019-0007 |
| work_keys_str_mv | AT shobandeolatunjia monetarypolicyspilloversthroughindustrialgrowthinnigeriaatimeseriesanalysis |