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Imperative of exchange rates policy and industrial growth in Nigeria: a time series analysis

Timisoara Journal of Economics and Business

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Title Imperative of exchange rates policy and industrial growth in Nigeria: a time series analysis
 
Creator SHOBANDE, Olatunji A.
 
Description This paper looks at the impact of exchange rate policy on industrial growth in Nigeria between 1981 and 2016. The study employed the Vector Error Correction Model (VECM) techniques, following the results of Johnansen Cointegration techniques that shows the existence of long run relationship among the variables considered. While, VECM estimates showed that money supply (monetary policy) impacted positively effects, evidence on, TAX (fiscal policy) impacted negative on industrial growth. Besides, the Exchange rate and Inflation impacted negatively on industrial growth., suggesting that the issue of stability remained a challenge unresolved by the Apex bank. The emanating policy antidotes are that there is urgent need to use proactive monetary policy through money supply to speed up the rate of industrial growth on one hand, while providing tax incentive to various industrial good that can further have enhanced the contribution of the sector to industrial growth on the other. In all, the need to align the objective of exchange rate policy with broader macroeconomic goals is necessary for effective policy transmission mechanism to speed up the rate of industrial progress in the country.
 
Publisher De Gruyter Open
 
Date 2018-08-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
 
Format application/pdf
 
Identifier http://tjeb.ro/index.php/tjeb/article/view/271
 
Source Timisoara Journal of Economics; Vol 10 No 2 (2017); 187-198
Timisoara Journal of Economics and Business; Vol 10 No 2 (2017); 187-198
2286-0991
 
Language eng
 
Relation http://tjeb.ro/index.php/tjeb/article/view/271/204
 
Rights Copyright (c) 2018 Olatunji A. SHOBANDE
http://www.degruyter.com/view/supplement/s22860991_Open_Access_License.pdf