Fiscal Policy Determinants of Money Demand in Nigeria: ARDL Bound Testing Approach
The study examines the fiscal policy determinants of money demand in Nigeria using annual time series data from 1981 to 2017. The study intends to determine the effects of fiscal policy variables on money demand in Nigeria. A modified Fisher money demand model was estimated using ARDL to capture the...
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| Format: | Article |
| Language: | English |
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Ovidius University Press
2019-01-01
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| Series: | Ovidius University Annals: Economic Sciences Series |
| Subjects: | |
| Online Access: | http://stec.univ-ovidius.ro/html/anale/RO/wp-content/uploads/2020/02/Section%20I/2.pdf |
| _version_ | 1818910915324542976 |
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| author | Raymond Osi Alenoghena |
| author_facet | Raymond Osi Alenoghena |
| author_sort | Raymond Osi Alenoghena |
| collection | DOAJ |
| description | The study examines the fiscal policy determinants of money demand in Nigeria using annual time series data from 1981 to 2017. The study intends to determine the effects of fiscal policy variables on money demand in Nigeria. A modified Fisher money demand model was estimated using ARDL to capture the long-run equilibrium relationship between the variables. The results showed that the fiscal policy variables had a stable long-run equilibrium relationship with money demand in Nigeria. Among the fiscal policy variables examined, government spending was found to be most impactful on the demand for money in the reverse direction. Furthermore, while government revenue and budget deficit have positive and significant effect on money demand, the effect of income was on significant. Also, government revenue and government expenditure granger caused demand for money. Overall, fiscal policy variables constitute strong influence on variations in money demand in Nigeria. The monetary authority in the country should take into account the influence of fiscal policy variables in planning the target level of money demand and monetary policy in Nigeria. |
| first_indexed | 2024-12-19T22:50:23Z |
| format | Article |
| id | doaj.art-7fe592fdef7949fba28097966dbdae0c |
| institution | Directory Open Access Journal |
| issn | 2393-3127 2393-3127 |
| language | English |
| last_indexed | 2024-12-19T22:50:23Z |
| publishDate | 2019-01-01 |
| publisher | Ovidius University Press |
| record_format | Article |
| series | Ovidius University Annals: Economic Sciences Series |
| spelling | doaj.art-7fe592fdef7949fba28097966dbdae0c2022-12-21T20:02:49ZengOvidius University PressOvidius University Annals: Economic Sciences Series2393-31272393-31272019-01-01XIX21322Fiscal Policy Determinants of Money Demand in Nigeria: ARDL Bound Testing ApproachRaymond Osi Alenoghena0University of Lagos, Department of Economics, Akoka Lagos, NigeriaThe study examines the fiscal policy determinants of money demand in Nigeria using annual time series data from 1981 to 2017. The study intends to determine the effects of fiscal policy variables on money demand in Nigeria. A modified Fisher money demand model was estimated using ARDL to capture the long-run equilibrium relationship between the variables. The results showed that the fiscal policy variables had a stable long-run equilibrium relationship with money demand in Nigeria. Among the fiscal policy variables examined, government spending was found to be most impactful on the demand for money in the reverse direction. Furthermore, while government revenue and budget deficit have positive and significant effect on money demand, the effect of income was on significant. Also, government revenue and government expenditure granger caused demand for money. Overall, fiscal policy variables constitute strong influence on variations in money demand in Nigeria. The monetary authority in the country should take into account the influence of fiscal policy variables in planning the target level of money demand and monetary policy in Nigeria.http://stec.univ-ovidius.ro/html/anale/RO/wp-content/uploads/2020/02/Section%20I/2.pdfmoney demandgovernment expendituregovernment revenuebudget deficitauto-regressive distributed lag model (ardl) |
| spellingShingle | Raymond Osi Alenoghena Fiscal Policy Determinants of Money Demand in Nigeria: ARDL Bound Testing Approach Ovidius University Annals: Economic Sciences Series money demand government expenditure government revenue budget deficit auto-regressive distributed lag model (ardl) |
| title | Fiscal Policy Determinants of Money Demand in Nigeria: ARDL Bound Testing Approach |
| title_full | Fiscal Policy Determinants of Money Demand in Nigeria: ARDL Bound Testing Approach |
| title_fullStr | Fiscal Policy Determinants of Money Demand in Nigeria: ARDL Bound Testing Approach |
| title_full_unstemmed | Fiscal Policy Determinants of Money Demand in Nigeria: ARDL Bound Testing Approach |
| title_short | Fiscal Policy Determinants of Money Demand in Nigeria: ARDL Bound Testing Approach |
| title_sort | fiscal policy determinants of money demand in nigeria ardl bound testing approach |
| topic | money demand government expenditure government revenue budget deficit auto-regressive distributed lag model (ardl) |
| url | http://stec.univ-ovidius.ro/html/anale/RO/wp-content/uploads/2020/02/Section%20I/2.pdf |
| work_keys_str_mv | AT raymondosialenoghena fiscalpolicydeterminantsofmoneydemandinnigeriaardlboundtestingapproach |