IDEAS home Printed from https://ideas.repec.org/a/asi/ajemod/v5y2017i4p480-492id921.html
   My bibliography  Save this article

Monetary Policy and its Implication for Balance of Payment Stability in Nigeria Between 1986-2015

Author

Listed:
  • Mukolu M.O
  • Illugbemi A.O
  • Otalu J.A

Abstract

An assessment of the impact of monetary policy on balance of payments in Nigeria from 1986-2015 was investigated. The data used for this study is mainly secondary data and was analyzed using ARDL co integration technique. The results showed the net trade (NT), money supply (M2) and bank credit to private sector (BCP) all have long run effect on the balance of payment while the differenced money supply (DM2), net trade and bank credit all showed the short run relationship with the balance of payment. From the overall analyses done on the variables, it was concluded that all variables exhibited relationships both in the long and short run respectively i.e are jointly significant. It’s therefore recommended that government through the monetary authority should ensure that the domestic money stock is consistent with macroeconomic objectives, put adequate policies in place that will stabilize money circulation in order to avoid excess liquidity in the economy which may lead to inflation. Export diversification and non-oil sector exports should be encouraged as this will enhance BOP position in Nigeria.

Suggested Citation

  • Mukolu M.O & Illugbemi A.O & Otalu J.A, 2017. "Monetary Policy and its Implication for Balance of Payment Stability in Nigeria Between 1986-2015," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 5(4), pages 480-492.
    • Handle: RePEc:asi:ajemod:v:5:y:2017:i:4:p:480-492:id:921
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5009/article/view/921/1401
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Atoi Ngozi Victor, 2020. "Macroeconometric Assessment of Monetary Approach to Balance of Payments in a Small Open Economy: The Nigeria Experience," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 6(3), pages 41-50, 03-2020.
    2. Kubendran, N., 2020. "Testing the Effectiveness of Johnsonian Approach using India’s Balance of Payments," Romanian Economic Business Review, Romanian-American University, vol. 15(3), pages 61-80, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:ajemod:v:5:y:2017:i:4:p:480-492:id:921. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5009/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.