MONEY MARKET INSTRUMENTS ON ECONOMIC GROWTH IN NIGERIA

Summary 

This study empirically “examines the effect of money market instruments on economic growth in Nigeria. The study collected time series data from 1981 – 2019 from Central Bank of Nigeria (CBN) statistical bulletin, analyzed with the preliminary test of descriptive statistic, correlation analysis and unit root test. The Johansen, co-integration test, optimal lag selection, Granger Causality test and Vector Error Correction Model estimation techniques were adopted. All variables considered were integrated of I(2) and co-integrated with causality relationship detected among the endogenous variables. Generally, the findings portray that money market instruments exacts significant influence on economic growth in Nigeria during the studied period. Among other things, the study” specifically point out that;

1. Treasury “bill has a long run significant effect on economic growth in Nigeria during the period considered.
2. Treasury certificate has a significant long run influence on economic growth in Nigeria during the sample period under investigation.
3. Development stock significantly influences Nigeria economic growth in the long run with causality feedback during the period under review.
4. Certificate of deposit also significantly influences economic growth in Nigeria in the long run during the period under consideration.
5. Commercial paper has no significant influence on economic growth in Nigeria both in the short and long run period.
6. Bank Acceptance has no significant influence on economic growth both in the short and long run period in Nigeria”.