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Money control indicators and investment in Nigeria

Author

Listed:
  • Osuji Casmir Chinaemerem
  • Nzotta Samuel Mbadike
  • Ebiringa Oforegbunam Thaddeus
  • Chigbu Emmanuel Ezeji

    (Department of Accounting, Banking and Finance, Delta State University, Delta State, Nigeria)

Abstract

This study empirically investigates the impact of money control indicators on investment in Nigeria. This study was necessitated by the apparent failure of the increasing volume of money supply in the Nigerian economy to induce a corresponding increase in investment, output and employment. The study made use of secondary data covering a period of 34 years from 1980 to 2013. Data were sourced from World Bank indicators and CBN Statistical Bulletin. Econometric techniques such as unit root test, co-integration, vector autoregressive model, and impulse response and variance decomposition analysis with granger causality test were used in the data analysis. The findings show that deposit rates impacted positively on investment in Nigeria and private sector borrowing from banks (PSBFB) was significant. These study shows that deposit rates and private sector borrowing from banks were determinants of investment on account of money control indicators. The study, therefore, recommends that government should device monetary measures capable of ensuring stability in deposit rates and private sector borrowing from banks with strict regulations to ensure sustainable money control for investment in Nigeria.

Suggested Citation

  • Osuji Casmir Chinaemerem & Nzotta Samuel Mbadike & Ebiringa Oforegbunam Thaddeus & Chigbu Emmanuel Ezeji, 2015. "Money control indicators and investment in Nigeria," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 1(2), pages 12-19, June.
    • Handle: RePEc:mgs:ijoied:v:1:y:2015:i:2:p:12-19
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    References listed on IDEAS

    as
    1. Özgür Aslan & Levent Korap, 2007. "Testing Quantity Theory of Money for the Turkish Economy," Journal of BRSA Banking and Financial Markets, Banking Regulation and Supervision Agency, vol. 1(2), pages 93-109.
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    2. Levent, Korap, 2009. "The search for co-integration between money, prices and income: low frequency evidence from the Turkish economy," MPRA Paper 19557, University Library of Munich, Germany.

    More about this item

    Keywords

    Nigeria; Money; Indicators; Borrowing; Investment;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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