Money Market and Economic Growth in Nigeria: An
Autoregressive Distributed Lag Approach

Monday A. Gbanador; PhD. Emmanuel U. Makwe; PhD. Mark C. Okonma

doi:https://doi.org/10.56201/ijssmr.v9.no4.2023.pg73.83

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Money Market and Economic Growth in Nigeria: An Autoregressive Distributed Lag Approach

Monday A. Gbanador, PhD. Emmanuel U. Makwe, PhD. Mark C. Okonma

Abstract

This study investigated the impact of money market on the economic growth in Nigeria, 1991- 2020. The ex-post facto research design was adopted for the study. The Gross domestic product (GDP) was used as proxy for economic growth while Treasury bills, Commercial papers (CP) and Bankers’ acceptances (BA) were used as proxy for the money market variables. Tests such as descriptive analysis, unit root, bounds test for cointegration, ARDL, serial correlation, heteroskedasticity and granger causality tests were conducted. The results revealed that there is a significant but positive impact of TB, CP, BA on the GDP. The study recommended that that the Monetary authority should initiate policies that would encourage Money market operations while CBN surveillance role should be proactive in order to check practices that could undermine or sabotage market integrity and soundness

Keywords

Economic growth; Money market; Treasury bills; Bankers’ Acceptances; Commercial papers.

References

Adesina-Uthman, G.A., Olatunde, A.A., & Ahmed, I.I. (2020). Re-examining money market and economic growth nexus in Nigeria:A SVAR model approach. West African Journal of Monetary and Economic Integration, 20 (1a), 44-65. Agbada, A., O & Odejimi, D. O. (2015). Development in money market operations and economic viability in Nigeria: An Empirical Analysis, European Journal of Business and Management, 7(18), 42 - 52 Etale, L. M., & Ayunku, P. E. (2017, December). Does Money Market Spur Economic Growth in Nigeria? Granger Causality Approach. International Journal of Development and Economic Sustainability, 5(7), 28-37. Eze, G. P., & Nera, M. (2017). Money Market and Economic Growth in Nigeria: A Causality Analysis. Online Journal of Arts, Management and Social Sciences, 2(1), 140 - 163. Gbanador, M.A. (2021). Fundamentals of banking: Theory and practice. Port Harcourt: Akanistic Ventures. Gurley, J.G., & Shaw, E.S. (1960). Money in a theory of Finance. Washington, D.C: Brookings Institution. Iwedi, M., & Igbanibo, D. S. (2015). The nexus between money market operations and economic growth in Nigeria: An empirical investigation, International Journal of Banking and Finance Research, 1(2), 1-17

Money Market and Economic Growth in Nigeria: An Autoregressive Distributed Lag Approach

Abstract

Keywords

References

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