Appropriate macroeconomic policies for Nigeria's economic growth, 1981-2010: an econometric analysis
by Steve S. Tombofa; Bodiseowei C. Obudah
African J. of Economic and Sustainable Development (AJESD), Vol. 3, No. 3, 2014

Abstract: Policymakers in Nigeria are aware of the importance of sustained economic growth as a macroeconomic policy. The paper is aimed at examining the effects of stabilisation policy instruments on economic growth. We used modern econometric techniques and the empirical results based on annual data spanning the period 1981-2010. Econometric results show that fiscal policy instrument had a negative impact on GDP growth. CEF took a negative sign in all the three models. All monetary policy variables except PRM had a positive impact on GDP growth. Nominal exchange rate growth had a positive impact on growth except in model 1. All three models had a good fit. This study recommends that expansionary fiscal policy measures be pursued with caution not to worsen inflationary trend in the economy. A less volatile interest rate regime would increase reliability and confidence of investors in the economy. It is also relevant for monetary authorities and other players in the economy to encourage economy-wide international trade competitiveness so as to maintain positive growth in exchange rate of the naira which will contribute to bringing about the desired GDP growth in the Nigerian economy and other developing economies.

Online publication date: Tue, 30-Sep-2014

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the African J. of Economic and Sustainable Development (AJESD):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com