چکیده:
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
خلاصه ماشینی:
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.
Using Johansen cointegration and Error Correction Model approaches, Nwani (2003) considered other economic indicators by investigating the long-run determinants of balance of payments dynamics in Nigeria between 1981 and 2002.
Using the Ordinary Least Squares (OLS) technique, the result showed a positive relationship between the balance of payments and monetary policy variables like money supply, exchange rate and interest rate.
Employing the Error Correction Model (ECM), the study revealed that the major monetary policy variables that determine the stability of balance of payment are exchange rate, money supply and domestic credit to the private sector.
3. 2 ARDL Bounds Cointegration Test The study employs the Autoregressive Distributed Lag (ARDL) bounds test by Pesaran, Shin and Smith (2001) to examine the effects of monetary policy transmission on balance of payments in the long and the short run periods in Nigeria.
1: Descriptive Statistics رجوع شود به تصویر صفحه payments (BOP), money supply (MS), domestic credit (DC), trade balance (TB), exchange rate (EXR), inflation rate (INF) and gross domestic product (GDP) from their respective long term mean values every year point at 9.
Using the bound testing approach, the study reveals the relationship that exists among monetary policy variables, output growth, trade balance and BOP adjustment in Nigeria.