Monetary Policy and the Manufacturing Sector in Nigeria

International Journal of Economics and Management Studies

© 2015 by SSRG - IJEMS Journal

Volume 2 Issue 1

Year of Publication : 2015

Authors : Osmond N. Okonkwo, Egbulonu K. Godslove, Emerenini F. Mmaduabuchi

10.14445/23939125/IJEMS-V2I1P103

How to Cite?

Osmond N. Okonkwo, Egbulonu K. Godslove, Emerenini F. Mmaduabuchi, "Monetary Policy and the Manufacturing Sector in Nigeria," SSRG International Journal of Economics and Management Studies, vol. 2,  no. 1, pp. 11-19, 2015. Crossref, https://doi.org/10.14445/23939125/IJEMS-V2I1P103

Abstract:

This study examines the impact of monetary policy variables on manufacturing in Nigeria from 1981 – 2012. The theoretical relationship between monetary policy variables and manufacturing sector (that is, the real sector) was critically examined and established in this study. Hence, the researcher specified four explanatory variables for this study based on theoretical underpinnings. The Johansen cointegration test was employed in order to establish long run equilibrium relationship between the explained and the explanatory variables. The error correction model (ECM) was employed to estimate the model. The study revealed that money supply and credit to private sector exert tremendous influence on manufacturing in Nigeria.

Keywords:

Monetary policy, money supply, manufacturing and cointegration.

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