Effect Of Money Market Instrument On The Economic Growth Of Nigeria

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