Effect of Fiscal Policy and Monetary Policy on Economic Growth in Nigeria (1989-2018): A Time Series Analysis

16 Pages Posted: 25 Nov 2020 Last revised: 11 Dec 2020

See all articles by Timothy Titiloye

Timothy Titiloye

Girne American University

Victor Ishola

Swansea University

Date Written: June 6, 2020


This paper aims to study the effect of fiscal and monetary policy on economic growth in Nigeria. The major objective of this research work is to examine how monetary policy influences economic growth in Nigeria. In the process of carrying out this research work, various variables such as government total expenditure, government total revenue, inflation, gross domestic product, interest rate, unemployment rate, and broad money supply were adopted. The data used in this research were secondary data obtained from the World Development Indicators (WDI) and Central Bank of Nigeria Statistical Bulletin. Findings were drawn from the research that money supply and government total expenditure and revenue has a significant impact on economic growth in Nigeria. Therefore, recommendation is suggested that to maintain a stable economic growth in Nigeria, the central bank need to inject more money into the economy and the government should use her revenue and expenditure at full optimization. The Autoregressive Distributed Lag Model (ARDL) was adopted as the estimation technique.

Keywords: Inflation, Interest Rate, Unemployment, GDP, Bound Test, ARDL, Bound Test, Granger Causality, Money Supply

Suggested Citation

Titiloye, Timothy and Ishola, Victor, Effect of Fiscal Policy and Monetary Policy on Economic Growth in Nigeria (1989-2018): A Time Series Analysis (June 6, 2020). Available at SSRN: https://ssrn.com/abstract=3706157 or http://dx.doi.org/10.2139/ssrn.3706157

Timothy Titiloye (Contact Author)

Girne American University ( email )

North Cyprus
Kyrenia, TN Girne 99300
+2348104437427 (Phone)

Victor Ishola

Swansea University ( email )

Haldane Building
Singleton Park
Swansea, SA2 8PP
United Kingdom
+447767306071 (Phone)

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