IDEAS home Printed from https://ideas.repec.org/a/taf/wjabxx/v21y2020i2p193-214.html
   My bibliography  Save this article

Financial Development and the Effectiveness of Monetary Policy Channels in Nigeria: A DSGE Approach

Author

Listed:
  • Olumuyiwa Tolulope Apanisile
  • Tolulope Temilola Osinubi

Abstract

The study examines the effect of financial development on the effectiveness of monetary policy transmission channels in Nigeria by estimating a sticky-price DSGE model using Bayesian estimation approach. Four major transmission channels are considered due to the economic and financial conditions of Nigeria. The study employs quarterly data from 2004:1 to 2016:4 and data are sourced from World Development Indicator (online version). Results show that financial development in the period under study has positive effect on monetary policy transmission channel. While credit channel is the most active channel in stimulating output, expectation channel is the most active in stabilizing prices.

Suggested Citation

  • Olumuyiwa Tolulope Apanisile & Tolulope Temilola Osinubi, 2020. "Financial Development and the Effectiveness of Monetary Policy Channels in Nigeria: A DSGE Approach," Journal of African Business, Taylor & Francis Journals, vol. 21(2), pages 193-214, June.
    • Handle: RePEc:taf:wjabxx:v:21:y:2020:i:2:p:193-214
    DOI: 10.1080/15228916.2019.1625021
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/15228916.2019.1625021
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/15228916.2019.1625021?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Olajide Oyadeyi & Temidayo Akinbobola, 2020. "Financial Development and Monetary Transmission Mechanism in Nigeria (1986-2017)," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 7(1), pages 74-90.
    2. Roudari, Soheil & Mensi, Walid & Kharusi, Sami Al & Ahmadian-Yazdi, Farzaneh, 2023. "Impacts of oil shocks on stock markets in Norway and Japan: Does monetary policy's effectiveness matter?," International Economics, Elsevier, vol. 173(C), pages 343-358.
    3. Olatunji A. Shobande & Oladimeji T. Shodipe & Simplice A. Asongu, 2019. "Global Shocks Alert and Monetary Policy Responses," Working Papers of the African Governance and Development Institute. 19/066, African Governance and Development Institute..
    4. Apanisile, Olumuyiwa Tolulope, 2021. "Monetary Policy Shocks and Income Inequality in Nigeria: Do Effects of Anticipated and Unanticipated Shocks Differ?," African Journal of Economic Review, African Journal of Economic Review, vol. 9(2), April.
    5. Sedegah Kordzo & Odhiambo Nicholas M., 2021. "A Review of the Impact of External Shocks on Monetary Policy Effectiveness in Non-WAEMU Countries," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 31(3), pages 37-59, September.
    6. Apanisile, Tolulope Olumuyiwa & Akinlo, Anthony Enisan, 2022. "Effectiveness of Monetary Policy Transmission Mechanism in an Implicit Inflation Targeting Regime: The Case of Nigeria," African Journal of Economic Review, African Journal of Economic Review, vol. 10(4), September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:wjabxx:v:21:y:2020:i:2:p:193-214. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/wjab20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.