Monetary Policy Shocks and Manufacturing Output in Nigeria (1981-2018)
DOI:
https://doi.org/10.21467/ajss.7.1.27-37Abstract
This study empirically investigates the impact of monetary policy shock on the manufacturing output in Nigeria using time series data covering the period between 1981 and 2018. Co-integration test was used to establish the long run relationship among the variables and Structural Vector Auto-Regressive model was employed to test for the shocks. It was found that shock to broad money supply would bring about positive and significant impact on the manufacturing output while the impact of shock to interest rate was found to be negative and insignificant. This study however concludes that shock to broad money is the main monetary policy instrument which can bring about positive change to manufacturing output in Nigeria. This paper then suggests that government and policy makers should primarily focus on this variable in their implementation of unanticipated monetary policy.
Keywords:
Monetary policy, interest rate, money supply, manufacturing output, S-VARDownloads
References
Adefeso, H. and Mobolaji, H. (2010). ‘The fiscal- monetary policy and economic growth in Nigeria: further empirical evidence.’ Pakistan Journal of Social Sciences, 7(2): 137-142.
Alam, T., and Waheed, M. (2006). ‘The Monetary Transmission in Pakistan. A Sectorial Analysis: Pakistan Institute of Development Economics.’ Munich Personal Re PEc Archive (MPRA) No. 2719.
Chigbu E. E & Okonkwo O.N (2014). ‘Monetary Policy and Nigeria’s Quest for Import Substitution Industrialization.’ Journal of Economics and Sustainable Development. 5(23), 2014, 99-105.
Imoughele, L.E. and Ismaila, M. (2014). ‘Emperical Investigation of the Impact of Monetary Policy on Manufacturing Sector Performance in Nigeria.’ International Journal of Education and Research, Vol. 2, NO. 1, January 2014.
Monsor, H.I and Razita, M.A (2005). ‘Exchange rate, monetary policy and manufacturing output in Malaysia’. Journal of economic cooperation 26,3. 2005.
Nneka, C.A. (2012). Investigating the Performance of Monetary Policy on Manufacturing Sector in Nigeria: 1980-2009.Arabian Journal of Business and Management Review (OMAN Chapter), 2(1):12-25.
Obamuyi, T.M, Edun, A.T and Kayode, O.F. (2010). ‘Bank lending, Economic Growth and The Performance of the Manufacturing Sector In Nigeria’. European Scientific Journal, 8 (3): 19- 36.
Obioma B.K and Anyanwu U.N (2015) ‘The effect of Industrial Development on Economic Growth: An Empirical Evidence in Nigeria’ European Journal of Business and Social Sciences, Vol 4, No 2, May, 2015.
Odior, E.S. (2013). ‘Macroeconomic Variables and the Productivity of the Manufacturing Sector in Nigeria: A Static Analysis Approach.’ Journal of Emerging Issues in Economics, Finance and Banking (JEIEFB), 1(5): 362-380.
Ogundipe, A.A, Uzoma, O.A, and Bowale, E.E (2017) “Monetary Policy Shocks and Manufacturing Sector Output in Nigeria: A Strutural Var-Approach” Journal of Internet Banking and Commerce.
Okonkwo,O.N, Godslove, E.K and Mmaduabuchi, E.F (2015). ‘Monetary Policy and Manufacturing Sector in Nigeria’. SSRG International Journal of Economics and Management Studies (SSRG-IJEMS), Vol. 2, Issue 1, January-February 2015.
Owolabi, A.U and Adegbite, T.A (2014). ‘The impact of monetary policy on industrial growth in Nigeria’. International journal of academic research in business and social sciences, Jan., 2014, Vol. 4, No. 1.
Vizek, M. (2006). ‘Econometric Analysis of Monetary Transmission Channels in Croatia’ Privrednakretanjaiekonomskapolitika, 109(16): 28-61.
Downloads
Published
Issue
Section
How to Cite
License
Copyright (c) 2020 Yinka Sabuur Hammed
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Author(s) retains full copyright of their article and grants non-exclusive publishing right to Advanced Journal of Social Science and its publisher AIJR Publisher. Author(s) can archive pre-print, post-print, and published version/PDF to any open access, institutional repository, social media, or personal website provided that Published source must be acknowledged with citation and link to publisher version.
Click here for more information on Copyright policy
Click here for more information on Licensing policy