IDEAS home Printed from https://ideas.repec.org/a/hur/ijarbs/v6y2016i4p86-101.html
   My bibliography  Save this article

Indirect Monetary Policy Instruments and Poverty Reduction in Nigeria: An Empirical Evidence from Time Series Data

Author

Listed:
  • Gideon G. Goshit
  • Thaddeaus D. Longduut

Abstract

The paper examines the effectiveness of indirect monetary policy instruments in reducing poverty in Nigeria using a multiple regression model as well as time series data covering the period 1986 to 2012. The Ordinary Least Squares (OLS) technique was used in the estimation of the regression model. The OLS regression result revealed that interest rate (INTR), banking sector’s credit to the economy (BSCE), bank reserve requirement (BARR), bank liquidity ratio (BLQR), central bank discount rate (CBDR) and inflation rate (INFR) could not significantly impact on poverty rate except money supply (MS), real gross domestic product (RGDP), unemployment rate (UNEMPR) and balance of payment (BOP). A major implication of this result is that indirect monetary policy instruments alone were grossly inadequate measure/policy to reduce poverty in Nigeria during the period under review. The paper therefore recommends that in addition to combining monetary policy with other economic policies (fiscal, income policies) etc to fight poverty in Nigeria, the monetary authorities as a matter of obligation must strengthens banking rules and regulations to enhance compliance with CBN’s rules and directives by commercial banks in order to further facilitate and enhance the effectiveness of monetary policy instruments in the economy in order to influence poverty reduction in Nigeria.

Suggested Citation

  • Gideon G. Goshit & Thaddeaus D. Longduut, 2016. "Indirect Monetary Policy Instruments and Poverty Reduction in Nigeria: An Empirical Evidence from Time Series Data," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(4), pages 86-101, April.
    • Handle: RePEc:hur:ijarbs:v:6:y:2016:i:4:p:86-101
    as

    Download full text from publisher

    File URL: http://hrmars.com/hrmars_papers/Indirect_Monetary_Policy_Instruments_and_Poverty_Reduction_in_Nigeria_An_Empirical_Evidence_from_Time_Series_Data.pdf
    Download Restriction: no
    File URL: http://hrmars.com/hrmars_papers/Indirect_Monetary_Policy_Instruments_and_Poverty_Reduction_in_Nigeria_An_Empirical_Evidence_from_Time_Series_Data.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. McKinnon, Ronald I, 1971. "Exchange-Rate Flexibility and Monetary Policy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 3(2), pages 339-355, May.
    2. Godwin Nwaobi, 2004. "Money and output interaction in Nigeria: an econometric investigation using multivariate cointegration technique," Economics Bulletin, AccessEcon, vol. 3(30), pages 1-10.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Maku Olukayode Emmanuel & Tella Afeez Taiwo & Fagbohun Akinola Christopher, 2020. "Alleviating Poverty in Nigeria: Keynesian Vs Monetary Theory of Poverty," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 30(1), pages 103-120, March.
    2. Gbatsoron Anjande & Simeon T Asom & Ngutsav Ayila & Bridget Ngodoo Mile & Victor Ushahemba Ijirshar, 2022. "Government Spending and Money Supply Roles in Alleviating Poverty in Africa," Papers 2209.14443, arXiv.org.

    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. Nwaobi, Godwin C, 2009. "Inflation,Unemployment and Nigerian Families: An empirical investigation," MPRA Paper 14596, University Library of Munich, Germany.
    2. P. F. Barry & C. W. Guille, 1976. "The Australian Business Cycle and International Cyclical Linkages, 1959–1974," The Economic Record, The Economic Society of Australia, vol. 52(2), pages 137-165, June.
    3. Hadj Fraj, Salma & bouchoucha, Najeh & Maktouf, Samir, 2020. "Political stability and economic growth: the role of exchange rate regime," MPRA Paper 104586, University Library of Munich, Germany.
    4. Salma Hadj Fraj & Mekki Hamdaoui & Samir Maktouf, 2018. "Governance and economic growth: The role of the exchange rate regime," International Economics, CEPII research center, issue 156, pages 326-364.
    5. Aremo Aremo, 2014. "Trade liberalization, Economic Growth and Poverty Level in Nigeria: Vector Auto-regression (VAR) Approach (1980-2009)," Journal of Economics and Behavioral Studies, AMH International, vol. 6(7), pages 591-606.
    6. Forgha Godfrey NJIMANTED & Daniel AKUME & Emmanuel Mbella MUKETE, 2016. "The Impact of Key Monetary Variables on the Economic Growth of the CEMAC Zone," Expert Journal of Economics, Sprint Investify, vol. 4(2), pages 54-67.

    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:hur:ijarbs:v:6:y:2016:i:4:p:86-101. 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: Hassan Danial Aslam (email available below). General contact details of provider: http://hrmars.com/index.php/pages/detail/IJARBSS .

    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.