Oladimeji, Ebenezer O. and Bowale, Ebenezer I.K and Okodua, Henry (2021) Real Sector Business Outlook and the Effectiveness of Monetary Policy on the Real Sector in Nigeria. In: International Conference on Energy and Sustainable Environment, 2021, Online.
![[img]](http://eprints.covenantuniversity.edu.ng/style/images/fileicons/application_pdf.png) |
PDF
Download (415kB) |
Abstract
The effectiveness of monetary policy on the real sector has been a major concern of the monetary authority in Nigeria, over a few years ago. This has resulted in series of regulatory actions of the Central Bank of Nigeria (CBN) to ensure more funds/credit are channeled to the sector, in line with the policy objectives of the government to improve the sector. The inability of the real sector investors to meet up with their loan repayment obligations sometimes restricts the flow of this credit from the banking system to the sector, thereby jeopardizing the efforts of the monetary authority. This study, while investigating this concern, observed a similar trend pattern between real sector business outlook and real productive activities; this warranted the inclusion of this variable in the model that was estimated with SVAR. The results revealed a significant estimate of 7.95583; which is a contemporaneous response of credit to real sector to shocks from real sector business outlook. Also, an average of 0.21% variation in real output is explained by structural innovations from real sector business outlook. This means that as business or macroeconomic environment improves, the real investors invest more by accessing credit from the banking system; also, the banks are more confident of loan repayment, as the improved macroeconomic environment is expected to support business growth.
| Item Type: | Conference or Workshop Item (Paper) |
|---|---|
| Uncontrolled Keywords: | Real Sector, Monetary Policy, Business Outlook, Structural VAR (SVAR) |
| 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: | 26 Sep 2022 11:54 |
| Last Modified: | 29 Sep 2022 09:55 |
| URI: | http://eprints.covenantuniversity.edu.ng/id/eprint/16202 |
Actions (login required)
 |
View Item |
