IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v8y2024i12p3806-3822.html
   My bibliography  Save this article

Impact of Monetary Policy on Food, Beverages and Tobacco Output in Nigeria: 2000-2023

Author

Listed:
  • Elizabeth Obiaje

    (Department of Economics, Faculty of Social Sciences, Bingham University, Karu, Nasarawa State, Nigeria)

  • Aiyedogbon O. John

    (Department of Economics, Faculty of Social Sciences, Bingham University, Karu, Nasarawa State, Nigeria)

  • Aigbedion Marvelous

    (Department of Economics, Faculty of Social Sciences, Bingham University, Karu, Nasarawa State, Nigeria)

Abstract

This paper investigates the impact of monetary policy on food, beverages and tobacco output in Nigeria, focusing on the relationship between key monetary variables(monetary policy rate, exchange rate, money supply, inflation and manufacturing sector credit) and manufacturing output of the food, beverages and tobacco. Employing a long-run Autoregressive distributed lag model, the analysis reveals that the exchange rate insignificantly influences food, beverages and tobacco, with an appreciation leading to a substantial increase in food, beverages and tobacco output volumes. The paper revealed that money supply positively impacts food, beverages and tobacco, underscoring the importance of adequate liquidity in facilitating manufacturing activities. Conversely, the inflation rate, despite its association with higher borrowing costs, exhibits a positive relationship with food, beverages and tobacco, suggesting that an active economy may enhance manufacturing performance. On the other hand, the monetary policy rate is shown to have a negative impact on food, beverages and tobacco, indicating that tighter monetary policy can dampen manufacturing by increasing the cost of borrowing and restricting liquidity. The findings suggest that policymakers need to strike a balance between controlling inflation and fostering a manufacturing-friendly environment. Stability in the exchange rate, sufficient money supply, and accessible credit markets are recommended to support robust food, beverages and tobacco output in Nigeria.

Suggested Citation

  • Elizabeth Obiaje & Aiyedogbon O. John & Aigbedion Marvelous, 2024. "Impact of Monetary Policy on Food, Beverages and Tobacco Output in Nigeria: 2000-2023," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(12), pages 3806-3822, December.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:12:p:3806-3822
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-8-issue-12/3806-3822.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/impact-of-monetary-policy-on-food-beverages-and-tobacco-output-in-nigeria-2000-2023/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ezu, Gideon Kasie PhD & Ukoh, Josephine.E, PhD, 2021. "Monetary Policy Instruments and Performance of Nigeria Capital Market," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(11), pages 720-726, November.
    2. Abiola John Asaleye & Rotdelmwa Filibus Maimako & Adedoyin Isola Lawal & Henry Inegbedion & Olabisi Popoola, 2021. "Monetary Policy Channels and Agricultural Performance: Evidence from Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(3), pages 205-218, March.
    3. Abiola John Asaleye & Rotdelmwa Filibus Maimako & Adedoyin Isola Lawal & Henry Inegbedion & Olabisi Popoola, 2021. "Monetary Policy Channels and Agricultural Performance: Evidence from Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(3), pages 205-218.
    4. World Health Organization, 2015. "WHO report on the global tobacco epidemic, 2015: Raising taxes on tobacco," University of California at San Francisco, Center for Tobacco Control Research and Education qt1fh1f32m, Center for Tobacco Control Research and Education, UC San Francisco.
    5. Rizgar Abdlkarim Abdlaziz & Khalid Abdul Rahim & Peter Adamu, 2016. "Oil and Food Prices Co-integration Nexus for Indonesia: A Non-linear Autoregressive Distributed Lag Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 6(1), pages 82-87.
    6. Abdullah Mohammed Almalki & Khaled Ibrahim Batayneh, 2015. "The relationship between inflation and financial development in Saudi Arabia," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(6), pages 321-332, Special I.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Junichi Minagawa & Thorsten Upmann, 2019. "Price Effects on Compound Commodities," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(2), pages 630-646, April.
    2. Odermatt, Reto & Stutzer, Alois, 2018. "Tobacco Control Policies and Smoking Behavior in Europe: More Than Trends?," Working papers 2018/24, Faculty of Business and Economics - University of Basel.
    3. Rohini Ruhil, 2015. "Millennium Development Goals to Sustainable Development Goals," International Studies, , vol. 52(1-4), pages 118-135, January.
    4. Nilanthi de Silva & Donald A. P. Bundy & Susan Horton & Dean T. Jamison & George C. Patton, 2017. "Disease Control Priorities, Third Edition," World Bank Publications - Books, The World Bank Group, number 28876.
    5. Fasanya, Ismail & Akinbowale, Seun, 2019. "Modelling the return and volatility spillovers of crude oil and food prices in Nigeria," Energy, Elsevier, vol. 169(C), pages 186-205.
    6. Ismail, Yusra & Masih, Mansur, 2019. "Is the relationship between inflation and financial development symmetric or asymmetric? new evidence from Sudan based on NARDL," MPRA Paper 94694, University Library of Munich, Germany.
    7. Kunofiwa Tsaurai, 2017. "Inflation Thresholds-Financial Development Nexus in South-Eastern Asian Emerging Markets," Journal of Economics and Behavioral Studies, AMH International, vol. 9(4), pages 14-24.
    8. Agus Widarjono & Abdul Hakim, 2019. "Asymmetric Oil Price Pass-Through to Disaggregate Consumer Prices in Emerging Market: Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 310-317.
    9. Ce Shang & Jidong Huang & Kai-Wen Cheng & Yanyun He & Frank J. Chaloupka, 2017. "The Association between Warning Label Requirements and Cigarette Smoking Prevalence by Education-Findings from the Global Adult Tobacco Survey (GATS)," IJERPH, MDPI, vol. 14(1), pages 1-16, January.
    10. Harsman Tandilittin, 2016. "What should the Government do to Stop Epidemic of Smoking among Teenagers in Indonesia?," Asian Culture and History, Canadian Center of Science and Education, vol. 8(1), pages 140-140, March.
    11. Camila Steffens & Paula Pereda, 2022. "Dynamic effects of smoking bans on addictive behavior among young adults," Working Papers, Department of Economics 2022_03, University of São Paulo (FEA-USP).
    12. Cheru Tesema Leshargie & Animut Alebel & Getiye Dejenu Kibret & Molla Yigzaw Birhanu & Henok Mulugeta & Patricia Malloy & Fasil Wagnew & Atsede Alle Ewunetie & Daniel Bekele Ketema & Alehegn Aderaw & , 2019. "The impact of peer pressure on cigarette smoking among high school and university students in Ethiopia: A systemic review and meta-analysis," PLOS ONE, Public Library of Science, vol. 14(10), pages 1-19, October.
    13. Ibrahim A. Adekunle & Isiaq O. Oseni, 2021. "Fuel subsidies and Carbon Emission: Evidence from asymmetric modelling," Research Africa Network Working Papers 21/001, Research Africa Network (RAN).
    14. Lu Niu & Dan Luo & Vincent M.B. Silenzio & Shuiyuan Xiao & Yongquan Tian, 2015. "Are Informing Knowledge and Supportive Attitude Enough for Tobacco Control? A Latent Class Analysis of Cigarette Smoking Patterns among Medical Teachers in China," IJERPH, MDPI, vol. 12(10), pages 1-13, September.
    15. Miroslava Ivanova & Lilko Dospatliev, 2023. "Effects of Diesel Price on Changes in Agricultural Commodity Prices in Bulgaria," Mathematics, MDPI, vol. 11(3), pages 1-22, January.
    16. Pan, Zhigang & Bai, Zhihong & Xing, Xiaochao & Wang, Zhufeng, 2024. "US inflation and global commodity prices: Asymmetric interdependence," Research in International Business and Finance, Elsevier, vol. 69(C).
    17. IfeanyiChukwu O. Onor & Daniel L. Stirling & Shandrika R. Williams & Daniel Bediako & Amne Borghol & Martha B. Harris & Tiernisha B. Darensburg & Sharde D. Clay & Samuel C. Okpechi & Daniel F. Sarpong, 2017. "Clinical Effects of Cigarette Smoking: Epidemiologic Impact and Review of Pharmacotherapy Options," IJERPH, MDPI, vol. 14(10), pages 1-16, September.
    18. Rizwan Suliankatchi Abdulkader & Dhirendra N. Sinha & Kathiresan Jeyashree & Ramashankar Rath & Prakash C. Gupta & Senthamarai Kannan & Naveen Agarwal & Deneshkumar Venugopal, 2019. "Trends in tobacco consumption in India 1987–2016: impact of the World Health Organization Framework Convention on Tobacco Control," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 64(6), pages 841-851, July.
    19. Raquel de Luna Antonio & Sabine Pompeia, 2019. "A fractionated analysis of hot and cool self-regulation in cigarette smokers from different socioeconomic backgrounds," PLOS ONE, Public Library of Science, vol. 14(8), pages 1-27, August.
    20. Patricia Frenz & Jay S. Kaufman & Carolina Nazzal & Gabriel Cavada & Francisco Cerecera & Nicolás Silva, 2017. "Mediation of the effect of childhood socioeconomic position by educational attainment on adult chronic disease in Chile," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 62(9), pages 1007-1017, December.

    More about this item

    Statistics

    Access and download statistics

    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:bcp:journl:v:8:y:2024:i:12:p:3806-3822. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    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.