AN EVALUATION OF THE IMPACT OF MONETARY AND FISCAL POLICIES ON NIGERIAN ECONOMIC GROWTH (1988-2012)

ABSTRACT The study is aimed at finding out the effect of monetary and fiscal policies on Nigeria economic for the period of 1989-2012. The objectives of this study are as follows, to find out which of the two kinds of policies is the most effective, to find out the level at which government achieved their aim of introducing the different policy instruments. The following hypothesis were formulated to guide the study: Ho: fiscal policy has no significant impact on Nigeria economic growth. H1: fiscal policy no significant impact on Nigeria economic growth. Ho: monetary policy has no significance impact on Nigeria economic growth. Ho: monetary policy has significance impact on Nigeria economic growth. To analyze, the hypothesis, annual time series data on GDP at 1990 constant factor cost, government expenditure, tax, interest rate and broad money supply from 1989-2012 were used. The methodology adopted was linear regression analysis applying the ordinary least square technique (OLS) to estimate the parameters. The test carried out yielded the following result that the fiscal policy has    not affected signfiicalty the Nigerian economic growth between the period of 1989-2012. Based on the research findings, a coupled of recommendations were made, two of which include: government fiscal and monetary policies should be one that is geared, towards  encouraging investments, through granting of tax incentives to infant industries,  government should follow its stipulated, budgets  since this will enhance the impact of fiscal  and monetary policy measure  in promoting economic growth. 
TABLE OF CONTENTS Title page  i Approval page  ii Dedication  iii Acknowledgment iv Abstract v Table of contents  vi CHAPTER ONE 1.0 INTRODUCTION 1 1.1 Background of the Study  1 •Statement of the Problem 5  •Objectives of the Study 7 •Hypothesis of the Study 8 •Significance of the Study 9 1.6 Scope and Limitation of the Study 10 CHAPTER  TWO 2.0 LITERATURE REVIEW 12 2.1 Theoretical Review on Monetary Policy  12 2.2 Theoretical Literature on Fiscal Policy 19 2.3 Empirical Literature 25 2.4 Limitation of the Previous Studies 32     References CHAPTER THREE  3.0  METHODOLOGY36 3.1 Theoretical Frame Work 36 3.2 Model Specification 37 3.3 Method of Evaluation38 3.4 Data Required and Sources 43 CHAPTER FOUR 4.0 PRESENTATION AND ANALYSIS OF RESULTS 44 4.1 Empirical Result  44 4.2 Examination of the Algebraic Signs of  the Parameter Estimates 50 4.3 Statistical Test of Significance 55 4.4 Second Order Test 60 4.5 Evaluation of the Working Hypothesis 61 4.5 Implication of the Results 63 CHAPTER FIVE 5.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS 65 5.1 Summary of the Findings 65 5.2 Conclusion 65 5.3 Recommendations 67 Bibliography69  Appendix 1 Appendix II



LIST OF TABLE
Statistical test of significant Result of f-statistic Annual time series data on gross domestic  product at 1990 constant factor cost,  Government expenditure, tax, interest rate  and broad money supply in Nigeria from 1989-2012. 
LIST OF TABLE
Statistical test of significant Result of f-statistic Annual time series data on gross domestic  product at 1990 constant factor cost,  Government expenditure, tax, interest rate  and broad money supply in Nigeria from 1989-2012.