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Economic and Financial Review

Authors

M. Ali
H. Aliero

Publisher

Central Bank of Nigeria, Research Department.

Keywords

Monetary policy, Manufacturing sector, Nigeria

Abstract

This study examined the effect of monetary policy on the manufacturing sector in Nigeria from 1970 to 2012 using Autoregressive Distributed Lag (ARDL) bound testing approach. Exchange rate was found as the only channel of monetary policy transmission with significantly negative effect on the manufacturing sector. This implies that manufacturing firms largely rely on foreign inputs for production and do not depend on the banking system for funding. The study, therefore, recommends indigenous technology and financial system development to reduce dependence on imported inputs and facilitate access to more funds.

Issue

53

Volume

2

Recommended Citation

Ali, M., Aliero, H., and Abubakar, M. (2015). An empirical analysis of the effect of monetary policy on the manufacturing sector in Nigeria. Economic and Financial Review, 53(2), 19-46.

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