The Effect of Monetary and Fiscal Policies on Economy Growth in Nigeria

ABSTRACT

The broad objective of this study is to the effect of monetary and fiscal policies on the economic growth in Nigeria while the specific objective to examine the effect of interest rate on public debt, assess the relationship between money supply and gross domestic product in Nigeria and to examine the impact of government capital expenditure on gross domestic product in Nigeria. To achieve this objective correlation and Pearson coefficient, assisted by the Statistical Package for Social Sciences (SPSS) version 20 in order to test the relationship between them. The data were analyzed using the variables and are summarized and analyzed into various components using multiple regression equation. Base on the finding interest rate has no  significant effect Gross domestic product ,money supply and impact on Gross domestic product and capital expenditure has no significant impact on Gross domestic.Therefore, base on the findings we made recommendation that Monetary policies should be used to create a favorable investment climate by facilitating the emergency of market based interest rate and exchange rate regimes that attract both domestic and foreign investments, create jobs, promote non oil export and revive industries that are currently operation far below installed capacity.

TABLE OF CONTENTS

Cover page 

Title 

Declaration………………………………………………………………………………………………………………………………iii

Certification…………………………………………………………………………………………………………………………….iv

Dedication……………………………………………………………………………………………………………………………….v

Acknowledgement………………………………………………………………………………………………………………….iv

Table of Contents………………………………………………………………………………………………………………

Abstract…………………………………………………………………………………………………………………………………

CHAPTER ONE: INTRODUCTION              PAGES

1.1Background of the study 1-3

1.2Statement of the problem  4-5

1.3Research question6

1.4Objective of the study           6

1.5Hypothesis of  the study7

1.6Justification for the study7-10

1.7Scope of the Study8

1.8Operational definition of terms8

CHAPTER TWO: LITERATURE REVIEW

2.1Conceptual Review           9-30

2.1.1      Conceptual Framework31

2.2   Empirical Review32-34

2.3 Theoretical Review 34-40

2.3.1Theoretical Framework 41-42

CHAPTER THREE: METHODOLOGY

3.0    Introduction 43

3.1 Area of Study 43

3.2 Research Design 43

3.3 Population, Sample size and Sampling Techniques 43-44

3.4 Source of Data and Data Collection Method44

3.5 Research Instruments44

3.5.1 Reliability of Instrument and Validity of Instrument 45

3.6 Re-statement of Hypothesis 45

3.7 Method of Data Analysis 45-46

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS 

4.1      Data Presentation and Analysis 47-65

4.2      Test of Hypothesis 66-69

4.3     Discussion of Findings  69

CHAPTER FIVE: SUMMARY, CONCLUSION, AND RECOMMENDATION 

5.1     Summary70

5.2     Conclusion 71

5.3      Recommendations71

5.4       Contribution to Knowledge 72

5.5      Limitation of the Study 72

5.6    Suggestion for Further Study72

           Reference             73-77

          Appendices