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Onwuasoeze, Cynthia Nbilite and Covenant University, Theses (2022) MONETARY POLICY, INFORMAL SECTOR AND ECONOMIC GROWTH IN NIGERIA. Masters thesis, Covenant University Ota.

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The Central Bank of Nigeria has implemented several strategies to simplify the influence of monetary policy on the formal sector and its dissemination to the established economy. However, severalvariables, particularly the magnitude of the informal economy, limit such measures. Hence, the broad objective of this study is to investigate the impact of monetary policy instruments and the size of the informal sector on economic growth in Nigeria using annual time series data from 1991 to 2020. The real gross domestic product growth rate is used as a proxy for economic growth. The data comes from the Central Bank of Nigeria's(CBN) publications, the Nigerian Bureau of Statistics andthe World Bank. The estimated approach used the Granger causality test and the OLS-based autoregressive distributed-lag (ARDL) method with the assistance of the EViews software.The estimated model was assessed using several diagnostic testssuch as serial correlation, normality, and stability. According to the empirical findings, the short-term economic growth in Nigeria was only negatively (-0.60) and significantly impacted by interest rates. In the long run, labour, monetary sector credit to the private and Size of the informal sectorhad significant impacts on Nigeria's economic growth. It was advised that to use monetary policy instruments to achieve sustainable economic growth effectively, the monetary authority has to develop and implement an expansionary monetary policy capable of causing rapid growth in the money supply. This would lead to a decrease in interest rates, which in turn would lead to an increase in aggregate investment. If correctly executed, they would increaseeconomic growth.

Item Type: Thesis (Masters)
Uncontrolled Keywords: Informal Sector, Monetary Policy, Auto-Regressive Distributed-Lag (ARDL), Economic growth
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
Divisions: Faculty of Law, Arts and Social Sciences > School of Management
Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: nwokealisi
Date Deposited: 19 Sep 2022 08:30
Last Modified: 19 Sep 2022 08:30

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