The Monetary Transmission Mechanism in Nigeria: A Sectoral Output Analysis

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Saibu, Olufemi Muibi
Nwosa, Philip Ifeakachukwu
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International Journal of Economics and Finance
The study investigated the transmission channels of monetary policy impulses on sectoral output growth in Nigeria for the period 1986 to 2009. Secondary quarterly data were used for the study while granger causality and Vector Auto-regressive Method of analysis were utilized. The results showed that interest rate channel was most effective in transmitting monetary policy to Agriculture and Manufacturing sectors while exchange rate channel was most effective for transmitting monetary policy to Building/Construction, Mining, Service and Wholesale/Retail sectors. The study concluded that interest rate and exchange rate policies were the most effective monetary policy measures in stimulating sectoral output growth in Nigeria.
Sectoral output, Monetary transmission channels, Granger causality, VAR model
Nwosa, P. I. and Saibu, M. O. (2012). “The Monetary Transmission Mechanism in Nigeria: A Sectoral Output Analysis. International Journal of Economic and Finance (IJEF), Vol 4. No.1.