Investigating monetary policy dynamics in Nigeria: The role of private investment

Ilhan Bora; Dervis Kirikkaleli; Joshua Dzankar Zoaka; Festus Victor Bekun; Daberechi Chikezie Ekwueme

doi:10.5267/j.msl.2019.7.037

Investigating monetary policy dynamics in Nigeria: The role of private investment

Ilhan Bora, Dervis Kirikkaleli, Joshua Dzankar Zoaka, Festus Victor Bekun, Daberechi Chikezie Ekwueme

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

Abstract

This paper explored the dynamics of monetary policy and its effect on private investment, using annual frequency data from 1981 to 2017. The paper employed autoregressive distributive lags methodology to estimate the link between private investment and some selected monetary indicators. Empirical finding shows that broad money supply increases private investment in the long run for the study area. Interestingly, our study shows inverse relationship between exchange rate and private investment. These findings are insightful for policymakers for strategic policy mix construction. Consequently, the study recommends, among other things, proper coordination of monetary and fiscal policies, good macroeconomic policies, proper channeling of financial resources to the private sector and proper measures for controlling inflation.

Original language	English
Pages (from-to)	247-254
Number of pages	8
Journal	Management Science Letters
Volume	10
Issue number	1
Early online date	26 Jul 2019
DOIs	https://doi.org/10.5267/j.msl.2019.7.037
Publication status	Published - 1 Jan 2020
Externally published	Yes

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth
SDG 10 Reduced Inequalities
SDG 16 Peace, Justice and Strong Institutions
SDG 17 Partnerships for the Goals

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title = "Investigating monetary policy dynamics in Nigeria: The role of private investment",

abstract = "This paper explored the dynamics of monetary policy and its effect on private investment, using annual frequency data from 1981 to 2017. The paper employed autoregressive distributive lags methodology to estimate the link between private investment and some selected monetary indicators. Empirical finding shows that broad money supply increases private investment in the long run for the study area. Interestingly, our study shows inverse relationship between exchange rate and private investment. These findings are insightful for policymakers for strategic policy mix construction. Consequently, the study recommends, among other things, proper coordination of monetary and fiscal policies, good macroeconomic policies, proper channeling of financial resources to the private sector and proper measures for controlling inflation.",

keywords = "ARDL, Investment portfolio, Monetary policy, Nigeria",

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T1 - Investigating monetary policy dynamics in Nigeria

T2 - The role of private investment

AU - Bora, Ilhan

AU - Kirikkaleli, Dervis

AU - Zoaka, Joshua Dzankar

AU - Bekun, Festus Victor

AU - Chikezie Ekwueme, Daberechi

PY - 2020/1/1

Y1 - 2020/1/1

N2 - This paper explored the dynamics of monetary policy and its effect on private investment, using annual frequency data from 1981 to 2017. The paper employed autoregressive distributive lags methodology to estimate the link between private investment and some selected monetary indicators. Empirical finding shows that broad money supply increases private investment in the long run for the study area. Interestingly, our study shows inverse relationship between exchange rate and private investment. These findings are insightful for policymakers for strategic policy mix construction. Consequently, the study recommends, among other things, proper coordination of monetary and fiscal policies, good macroeconomic policies, proper channeling of financial resources to the private sector and proper measures for controlling inflation.

AB - This paper explored the dynamics of monetary policy and its effect on private investment, using annual frequency data from 1981 to 2017. The paper employed autoregressive distributive lags methodology to estimate the link between private investment and some selected monetary indicators. Empirical finding shows that broad money supply increases private investment in the long run for the study area. Interestingly, our study shows inverse relationship between exchange rate and private investment. These findings are insightful for policymakers for strategic policy mix construction. Consequently, the study recommends, among other things, proper coordination of monetary and fiscal policies, good macroeconomic policies, proper channeling of financial resources to the private sector and proper measures for controlling inflation.

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KW - Investment portfolio

KW - Monetary policy

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Investigating monetary policy dynamics in Nigeria: The role of private investment

Abstract

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