ABSTRACT

The study investigated the effect of money market instruments on economic growth of Nigeria using annual secondary time series data from 2000 to 2016 sourced from the CBN statistical bulletin. The money market instruments considered in the study are treasury certificate, Treasury bill, commercial papers and banker's acceptance and economic growth was proxied by real GDP. The multiple regression analysis was used to analyze the data collected. The results showed that treasury bills, certificate of deposit and banker's acceptance were the significant money market instruments that affected economic growth 'in Nigeria. Consequently, it was recommended that government should create the appropriate macroeconomic policies and legal framework towards sustaining the money market for productive activities, investments and the ultimate goal of economic growth in Nigeria.

TABLE OF CONTENTS

Cover Page

Title Page i

Declaration ii

Certification iii

Dedication iv

Acknowledgement v

Table of Contents vi

List of Tables ix

Abstract x

CHAPTER ONE INTRODUCTION

1.1 Background of the study 1

1.2 Statement of the problem 3

1.3 Objectives of the study 4

1.4 Research question 5

1.5 Research Hypothesis 5

1.6 Significance of the study 5

1.7 Scope of the Study 6

CHAPTER TWO LITERATURE REVIEW

2.1 Conceptual Framework 7

2.1.1 Concept of Money Market Instrument 7

2.1.1.1 Characteristics of Money Market 8

2.1.1.2 Functions of Money Market 11

2.1.1.3 Importance of Money Market 13

2.1.1.4 Instruments Traded in the Money Market . 14

2.1.1.5 Developed Money Market 16

2.1.2 Specific roles of Money Market in the Economy 18

2.1.3 Money Market in Nigeria                                    21

2.1.4 Money Market and Economic Growth                            22

2.2 Theoretical Framework 24

2.2.1 The Classical View on the Theory of Money 24

2.2.2 Modern Growth Theory 25

2.2.3 Financial Intermediation Theory                                      26

2.3 Empirical review 27

CHAPTER THREE RESEARCH METHODOLOGY

3.1 Research Design                                            34

3.2 Study Area                                                              34

3.3 Sources of Data Collection 34

3.4 Method of Data Analysis                                                  34

3.5 Model Specification                                                35

CHAPTER FOUR 

PRESENTATION OF DATA, ANALYSIS AND DISCUSSION

4.1 Presentation of Data                                                     36

4.2 Data Analysis and Presentation of Results 3 6

4.2.1 Descriptive Statistics 37

4.2.2 Regression Analysis 38

4.2.2.1 Hypotheses Testing and Discussion of Findings 40

CHAPTER FIVE 

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

Summary of Findings                                                       42

5.1 Conclusion 42

5.2 Recommendations 43

References 44

Appendix . 46