Monetary Policy Dynamics and the Nigeria’s Global Competitiveness: The Missing Link

Authors

  • Oghenekparobo Ernest Agbogun Dennis Osadebay University, Asaba
  • Omolegie Bruno Oshiobugie Delta State University of Science and Technology, Ozoro
  • Oghenero Godday Oboro Delta State University of Science and Technology, Ozoro

DOI:

https://doi.org/10.59653/jbmed.v2i02.717

Keywords:

Monetary Policy, Dynamics Nigeria’s Global Competitiveness, Missing Links

Abstract

Despite the series of monetary policies adopted by the Nigerian government over time, the (Nigerian) economy in comparison to other countries in the world like South Africa, the USA, Ghana, and the like is still improvised. Still, inconsistency between monetary policy formulation and implementation remains another major issues yet unattended to. It is in this regards that, the current study is dedicated towards examining the effect of monetary policy dynamics and the Nigeria’s global competitiveness from 1992 to 2021 (i.e., 30 years) using Autoregressive Distributed Lag (ARDL) model. The study disclosed that, the variables are integrated at level and first difference while the ARDL Bound test evidenced that, the series cointegrates. Specifically, monetary policy rate has a positive minimal effect on Nigeria’s global competitiveness, while the CRR improved Nigeria’s global competitiveness significantly. However, both lending rates and exchange rates have a significant negative effect on economic competitiveness. Consequently, the paper concludes that both the cash reserve ratio and the Nigeria’s demeaning state are attributed to the high exchange rate (EXR) and high lending rates. Thus, the paper submits that the current monetary policy rates are sustained and that all DMBS should adhere to the stipulated Cash Reserve Ratio (CRR) since it has improved the Nigeria’s global competitiveness significantly. Lastly, the study confirmed that, the missing link is the policy surmount on the part of the Nigerian government.

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Author Biographies

Oghenekparobo Ernest Agbogun, Dennis Osadebay University, Asaba

Oghenekparobo Ernest Agbogun (Ph.D. Candidate)1*

Lecturer, Department of Banking and Finance, Dennis Osadebay University, Asaba, Delta State, Nigeria

Emails & Orcid Id: oghenekparobo.agbogun@dou.edu.ng

Orcid id: https://orcid.org/0009-0009-7289-1782

Omolegie Bruno Oshiobugie, Delta State University of Science and Technology, Ozoro

Omolegie Bruno Oshiobugie (Ph.D.)2

Department of Banking and Finance, Delta State University of Science and Technology, Ozoro, Delta State, Nigeria

Oghenero Godday Oboro, Delta State University of Science and Technology, Ozoro

Oghenero Godday Oboro (Ph.D.)3

Department of Banking and Finance, Delta State University of Science and Technology, Ozoro, Delta State, Nigeria

Email: oborogo@dsust.edu.ng

Orcid Id: https://orcid.org/0009-0008-1366-6481

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Published

2024-04-02

How to Cite

Agbogun, O. E., Oshiobugie, O. B., & Oboro, O. G. (2024). Monetary Policy Dynamics and the Nigeria’s Global Competitiveness: The Missing Link. Journal of Business Management and Economic Development, 2(02), 852–867. https://doi.org/10.59653/jbmed.v2i02.717

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