Economic Policy Choices and Economic Growth of Nigeria: Lessons from the Asian Pacific
DOI:
https://doi.org/10.59653/ijmars.v3i01.1405Keywords:
Economic Growth, Real Gross Domestic Product, monetary policy, fiscal policy, trade policy, Policy Choices, Asian PacificAbstract
This study examined the effect of economic policy choices on the growth of Nigeria with specific reference to the Asian Pacific from 1994 to 2022 (i.e. 29 years). Specifically, the study covered three (3) variables. The three economic policy variables are broad money supply, total trade and government revenue. The three economic policy variables accounted for monetary, trade and fiscal policy measures. Meanwhile, the economic growth proxy is considered to be real gross domestic product (RGDP). Data were retrieved from the Central Bank of Nigeria Statistical Bulletin, 2022. The robust regression analysis was suitable for the study. The study confirmed that the broad money supply negatively affects economic growth. However, total trade and government revenue positively affected economic growth. Overall, the study concludes that economic policy choices have a mixed effect on the growth of the Nigerian economy. As such, the Nigerian government should use its monetary policy tools to curb excess cash from circulation. Further, efforts should be made to reduce some trade barriers that mitigate successful trading in Nigeria. Lastly, the Nigerian government should reappraise the country's current trade policies, as this may be the main reason the Nigerian economy is still underdeveloped.
Downloads
References
Ajayi, M. A., &Aluko, O. A. (2016). Evaluating the Relative Impact of Monetary and Fiscal Policy in Nigeria using the St. Louis Equation. Acta Universitatis Danubius. Economica, 13(1), 1-10.
Akinjare, V. A., Babajide, A. A., Isibor, A. A., & Okafor, T. C. (2016). Monetary Policy and its Effectiveness on Economic Development in Nigeria. International Business Management, 10(22), 5336-5340.
Anowor, O. F., & Okorie, G. C. (2016). A reassessment of the impact of monetary policy on economic growth: a study of Nigeria. International Journal of Developing and Emerging Economies, 4(1), 82-90.
Ayodeji, A., & Oluwole, A. (2018). Impact of monetary policy on economic growth in Nigeria. Open Access library journal, 5(2), 1-12.
Knight, F. H. (2024). Unemployment: And Mr. Keynes's Revolution in Economic Theory 1. In Keynes, Chicago and Friedman, Volume 2 (pp. 435-460). Routledge.
Bende-Nabende, A. (2018). FDI, regionalism, government policy and endogenous growth: a comparative study of the ASEAN-5 economies, with development policy implications for the least developed countries. Routledge.
Bodunrin, O. S. (2016, August 30). The Impact of Fiscal and Monetary Policy on Nigerian Economic Growth. Retrieved April 3, 2020, from ideas.repec.org website: https://ideas.repec.org/p/pra/mprapa/92811.html
Chakravarty, S. (2017). Alternative approaches to a theory of economic growth: Marx, Marshall and Schumpeter. Orient Longman (1980).
Ebikila, S., Agada, F. A. Lucky, T. & Matthew, B. (2018). Impact of money supply on some macroeconomic variables on the Nigerian economy.International Journal of Scientific and Research Publications, 8 (8) 18-32
Elakhe, E. (2016). GRIN - Fiscal and Monetary Policy and Economic Growth in Nigeria. A Comparative Analysis. Retrieved April 3, 2020, from www.grin.com website: https://www.grin.com/document/375716.
Enakirerhi, L. I., & Ighosewe, F. E. (2024). Growth in revenue and earnings management practices in Nigeria pre-and post-IFRS adoption periods. International Journal of Applied Economics, Finance and Accounting, 18(1), 88-97.
Ewiwile, S., Sinebe, M. T., Mokobia, N. A., Agbogun, O. E., & Ighoroje, J. (2024). Pre and Post Treasury Single Account (TSA) Implementation and the Nigeria's Macroeconomic Performance. Journal of Ecohumanism, 3(6), 1019-1033.
Ijirshar, V.C. (2019). Impact of trade openness on economic growth among ECOWAS Countries. CBN Journal of Applied Statistics, 10 (1), 75-96.
Isaac John, E. I. J., &Udoye, O. N. (2018). Effect of Monetary Policy on Nigerian Economy. (pp. 190–216).
Lawal, A. I., Somoye, R. O., Babajide, A. A., &Nwanji, T. I. (2018). The effect of fiscal and monetary policies interaction on stock market performance: Evidence from Nigeria. Future Business Journal, 4(1), 16-33.
Lawrence, O. U., Odimgbe, O.S., Ezeabalisi, V.N & Udoka, B. A. (2018). Effect of monetary policy on economic growth in Nigeria: An Empirical Investigation: Annal of Spiru Haret University Economics Series 2(4) 13-57
Mlachila M. (2018) Monetary Policy Credibility and Exchange Rate Pass-Through in South AfricaInternational Monetary Fund WP/18/173 IMF Working Paper
Morakinyo, F. O., David, J. O., &Alao, J. A. (2018). Impact of Fiscal Policy Instrument on Economic Growth in Nigeria. International Journal of Economics and Financial Management, 3(1), 14-29.
Nwankwo, D. J., Kalu, C. U., &Chiekezie, M. O. (2017). Fiscal policy-economic growth correlates Further evidence from Nigeria economy. International Journal of Academic Research in Business and Social Sciences, 7(1), 1-11.
Okorie, D., Sylvester, M. A., & Simon-Peter, D. A. C. (2017). Relative Effectiveness of Fiscal and Monetary Policies in Nigeria. Asian Journal of Social Science Studies, 2(1), 1-10
Onoh, J. K. (2017). The Nigerian oil economy: From prosperity to the glut. Rutledge.
Otonne, A., &Oyenuga, O. (2019). How Sustainable is the Federal Government of Nigeria Debt after the exit from Paris Club?. African Journal of Economic Review, 7(2), 78-90.
Pervez, A., & Ali, I. (2024). Robust regression analysis in analyzing financial performance of public sector banks: A case study of India. Annals of Data Science, 11(2), 677-691.
Zhang, W. B. (2017). Economic Growth and Structural Change–A Synthesis of the Walrasian General Equilibrium, Ricardian Distribution and Neoclassical Growth Theories. Asian Development Policy Review, 5(1), 17-36.
Zhang, W. B. (2018). Economic Growth Theory: Capital, Knowledge, and Economic Structures. Rutledge
Downloads
Published
How to Cite
Issue
Section
Categories
License
Copyright (c) 2025 Goddey Obuareghe, Jude Dike

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).