|تعداد مشاهده مقاله||104,967,976|
|تعداد دریافت فایل اصل مقاله||82,039,943|
The Empirical Analysis of Monetary Policy on Balance of Payments Adjustments in Nigeria: A Bound Testing Approach
|Iranian Economic Review|
|مقاله 7، دوره 23، شماره 1، فروردین 2019، صفحه 129-147 اصل مقاله (530.7 K)|
|شناسه دیجیتال (DOI): 10.22059/ier.2018.69102|
|Bukonla Grace Osisanwo 1؛ Sheriffadeen Tella1؛ Bolaji Adesola Adesoye2|
|1Department of Economics, Olabisi Onabanjo University, Ago-Iwoye, Nigeria|
|2Department of Economics, Faculty of Social and Management Sciences, Ago-Iwoye, Ogun state, Nigeria.|
|This study investigates the impact of monetary policy on balance of payments (BOP) adjustment in Nigeria within the periods, 1980-2015. The study used the bound testing approach to show the relationship that exists among monetary policy variables (money supply, domestic credit, inflation and exchange rate), output growth, and trade balance and BOP adjustment in Nigeria. The study shows that there is a long-run relationship between monetary policy variables and balance of payment adjustment. The findings further revealed that in the long-run, money supply and trade balance have positive impact on balance of payments adjustment in Nigeria. On the other hand, domestic credit, exchange rate, inflation rate and gross domestic product suggest a negative impact on balance of payments in Nigeria. An important observation from the empirical estimate is that money supply has more of a long-term impact on BOP adjustment than other monetary policy variables. This study suggests that in stabilizing the BOP position of the country, the apex bank should try as much as possible to balance money supply and demand for money so as to avoid distortion in price.|
|Keywords: Monetary Policy Variables؛ Output؛ trade؛ Balance of Payments؛ Nigeria. JEL Classification: E52؛ C67؛ F1؛ J33؛ O55|
Adamu, P. A., & Itsede, O. C. (2010). Balance of Payments Adjustment: The West African Monetary Zone (WAMZ) Experience. Journal of Monetary and Economic Integration, 10(2), 100-116.
Ajayi, O. F. (2014). Determinants of Balance of Payments in Nigeria: A Partial Adjustment Analysis. Journal of African Macroeconomic Review, 5(1), 304-314.
Alexander, D. (2013). Empirical Analysis of Balance of Payment in Ghana: Monetary Approach (1980-2010). European Journal of Business and Management, 5(8), 2222-2839.
Boateng, C., & Ayentimi, D. T. (2013). An Empirical Analysis of Balance of Payments in Ghana Using the Monetary Approach. European Journal of Business and Management, 5(8), 101-110.
Carbaugh, R. J. (2004). Balance of Payments Adjustments under Fixed Exchange Rate. In International Economics (9th Ed.). California: South-Western College Publishing.
Central Bank of Nigeria. (2015). Statistical Bulletin. Retrieved from
Chacholiades, M. (1990). International Economics. New York: McGraw – Hill Publishers.
Dhliwayo, R. (1996). The Balance of Payments as Monetary Phenomenon: An Econometric Study of Zimbabwe‘S Experience. African Economic Research Consortium (AERC), Research Paper, Retrieved from
Howard, M., & Mamingi, N. (2002). The Monetary Approach to the Balance of Payments: An Application to Barbados. The Singapore Economic Review, 47(2), 213-228.
Imoisi, A. I, Olatunji, L. M., & Ekpenyong, B. I (2013). Monetary Policy and Its Implications for Balance of Payments Stability in Nigeria: 1980-2010. International Journal of Economics and Finance, 5(3), 196-204.
Imoisi, A. I. (2012). Trends in Nigeria’s Balance of Payments: An Empirical Analysis from 1970-2010. European Journal of Business and Management, 4(21), 210-220.
Imoughele, L. E., & Ismaila, M. (2015). Monetary Policy and Balance of Payment Stability in Nigeria. International Journal of Academic Research in Public Policy and Governance, 2(1), 1-15.
Jimoh, A. (2004). The Monetary Approach to Exchange Rate Determination: Evidence from Nigeria. Journal of Economic Cooperation, 25(2), 109-130.
Johnson, H. G. (1977). The Monetary Approach to Balance of Payments: A non-Technical Guide. Journal of International Economics, 7, 251-268.
Kallon, K. M. (1994). An Econometric Analysis of Inflation in Sierra Leone. Journal of African Economies, 3(2), 199-230.
Looney, E. R. (1991). A Monetary Approach to Movements in Caribbean Balance of Payments. Social and Economic Studies, 40(1), 105-132.
Narayan, P. K. (2004). Reformulating Critical Values for the Bounds F-Statistics Approach to Co-integration: An application to the Tourism Demand Model for Fiji. Monash University Discussion Papers, Retrieved from https://www.researchgate.net.
Nwani, V. M. (2003). Determinants of Balance of Payment Fluctuation in Nigeria (1981-2002). Journal of Economic Studies, Retrieved fromhttps://s3.amazonaws.com/.
Nwanosoke, D. U., Uzoechina, B., Ebenyi, G. O., & Ishiwu, V. (2017). Analysis of Balance of Payment Trends in Nigeria: A Test of Marshall-Lerner Hypothesis. Saudi Journal of Business and Management Studies, 2(5), 468-475.
Pesaran, H. M., Shin, Y., & Smith, R. J. (2001). Bounds Testing Approaches to the Analysis of level Relationships. Journal of Applied Econometrics, 16, 289-326.
Radulescu, M. (2007). The Impact of the National Bank of Romania Monetary policy on the Balance of Payments. Journal for Economic Forecasting, 4(2), 26-43.
Tijani, J. O. (2014). Empirical Analysis of Balance of Payments Adjustment Mechanisms: Monetary Channel in Nigeria, 1970-2010. Mediterranean Journal of Social Sciences, 5(14), 67-76.
تعداد مشاهده مقاله: 744
تعداد دریافت فایل اصل مقاله: 1,464