ABSTRACT
The study was am empirical effort to analyze
trade liberalization, relative effectiveness of fiscal and monetary policies on
economic growth in Nigeria for a robust fiscal period of forty years
(1981-2021). The objectives were to examine if Trade Liberalization (Trade
Openness), Monetary policy and Fiscal policy have significant effect on
Economic Growth Rate (GDPGR) in Nigeria; to investigate if monetary or fiscal
policy has a better effect on economic growth; and to trace whether there was
long relationship between the variables in the model. Monetary Policy
Instruments (Exchange Rate, Monetary Policy Rate and Money Supply) on Economic
Growth Rate (GDPGR) in Nigeria and ascertaining the effect of key Fiscal Policy
Instruments (Government Expenditure and External Debt) on Economic Growth Rate
(GDPGR) in Nigeria. Furthermore, the study regressed gross domestic product
growth rate (GDPGR) against trade openness (TOP), exchange rate (EXR), monetary
policy rate (MPR), government expenditure (GXE) and external debt (EXD)
obtained from central bank of Nigeria annual financial report 2022, through
augmented dickey and fuller test for stationarity, auto regressive distributed
lag bound test for the estimation of long run relationship among the series was
carried out, with empirical evidence suggesting the existence of a sustainable
long run association between the variables used to proxy trade liberalization,
fiscal policy measures, monetary policy and economic growth rate in Nigeria,
while ARDL error correction estimate established satisfactory speed of
adjustment from long run disequilibrium to short run. Further empirical
underlining indicated that; government capital
and recurrent expenditure provided a positive association ship with economic
growth rate in Nigeria between 1981 and 2021. Thus, increasing government
expenditure for the period by one more percent resulted to an increase of
22.89% increase on economic growth rate in the short, while in the long run, a
percent increase resulted to 97.95% surge on economic growth in the Nation.
Also, it was obtained that expansive monetary supply in the short run exerted a
negative influence over economic growth agenda of the Nation, thus increasing
the quantity of money in supply resulted to a 68.6% decline on economic growth,
while in the long run, increasing the supply of money also indicated a negative
economic influence, with a declining trend of 30.30% significant percent. The
study therefore recommended that, government through the monetary authorities
in Nigeria should moderate the supply and minting of the naira
indiscriminately, without proper consultations and consideration of prevailing
macroeconomic trends in the economy. Based on the forgoing, the study concluded
that, trade liberalization, fiscal and monetary policy instruments are they
sole microcosm and macrocosm of sustainable economic growth agenda attainment
in the twenty first century economy.
UDUAKOBONG, B (2024). Trade Liberalization and the Relative Effectiveness of Monetary and Fiscal Policies on Economic Growth in Nigeria:- Uduakobong Akpanabba B.. Mouau.afribary.org: Retrieved Oct 09, 2024, from https://repository.mouau.edu.ng/work/view/trade-liberalization-and-the-relative-effectiveness-of-monetary-and-fiscal-policies-on-economic-growth-in-nigeria-uduakobong-akpanabba-b-7-2
BROWN, UDUAKOBONG. "Trade Liberalization and the Relative Effectiveness of Monetary and Fiscal Policies on Economic Growth in Nigeria:- Uduakobong Akpanabba B." Mouau.afribary.org. Mouau.afribary.org, 25 Apr. 2024, https://repository.mouau.edu.ng/work/view/trade-liberalization-and-the-relative-effectiveness-of-monetary-and-fiscal-policies-on-economic-growth-in-nigeria-uduakobong-akpanabba-b-7-2. Accessed 09 Oct. 2024.
BROWN, UDUAKOBONG. "Trade Liberalization and the Relative Effectiveness of Monetary and Fiscal Policies on Economic Growth in Nigeria:- Uduakobong Akpanabba B.". Mouau.afribary.org, Mouau.afribary.org, 25 Apr. 2024. Web. 09 Oct. 2024. < https://repository.mouau.edu.ng/work/view/trade-liberalization-and-the-relative-effectiveness-of-monetary-and-fiscal-policies-on-economic-growth-in-nigeria-uduakobong-akpanabba-b-7-2 >.
BROWN, UDUAKOBONG. "Trade Liberalization and the Relative Effectiveness of Monetary and Fiscal Policies on Economic Growth in Nigeria:- Uduakobong Akpanabba B." Mouau.afribary.org (2024). Accessed 09 Oct. 2024. https://repository.mouau.edu.ng/work/view/trade-liberalization-and-the-relative-effectiveness-of-monetary-and-fiscal-policies-on-economic-growth-in-nigeria-uduakobong-akpanabba-b-7-2