31 empirical evidences on the impact of money supply

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3.1 Empirical Evidences on the Impact of Money Supply on Economic Growth In analyzing the relationship between money supply and economic growth in Nigeria for the period of 9 years from (1995-2004) using simple regression technique by Isiaka et al ., (2011) results showed that there exist long-run insignificant positive relationship between money supply and GDP . Contrary to their results, Amassona et al ., (2011) investigated effect of money supply on some Macroeconomic variables in Nigeria. Using simplified OLS with annual data spanning from (1986-2009), with the conclusion that there exist an inverse relationship between the two variables for the period under review. Looking at the impact of injection and withdrawal of money stock on economic growth in Nigeria, Taiwo, (2012) adopted Ordinary Least Square ( OLS ) of as estimation technique over a period of (1970-2008). The results revealed that monetary aggregate injection has positive effect on economic growth while withdrawal of money stock showed a negative impact on the GDP of Nigeria. In a recent study, by Chinuba, Akhor, and Akwaden in 2015 estimating a time series data covering a period of 1981-2008 with simple OLS on the Nigeria economy, the result supply that money supply exerts a considerable positive impact on economic growth. An investigation into the long-run and short-run impact of money supply on economic growth of Nigeria for the period 1986-2006 by Omotor, (2010) using VAR Model, the results provide evidence in support of the long run positive impact of money supply on growth in income but has no impact in the short-run. Adeyeye et al ., (2006) empirically studied the impact of interest rate and money supply proxy by bank loan on the GDP . The result showed that although, Bank loan is significant
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Impact of Money Supply and Inflation on Economic Growth in Nigeria (1973-2013) DOI: 10.9790/5933-0803042637 29 | Page but has negative impact on economic growth. Ordinary least square method was employed on secondary annual data spanning from 1970-2003 to arrive at the conclusion. Suleiman, (2010) studied the impact of money supply on economic growth of Nigeria, the study made use of ordinary least square method by applying secondary annual data for a period of 37 years from 1970-2007 and concluded base on the result that money supply has negative impact on the real GDP of Nigeria for the period under review 3.2 Empirical evidences on the Impact of Inflation on Economic Growth . Christian et al ., (2010) estimated inflation threshold in WAMZ case of Ghana and Nigeria; non linear (conditional least square techniques) was employed in the work for a period of 34yrs from 1975 to 2008. The result shows that there exists a statistically positive impact of inflation on economic growth in the two countries but the causality test conducted with lags shows no causality between the two variables in each country. Similar to this is work of Aminu and Amono, (2012) which conducted an empirical investigation into the effect of inflation on the growth and development of Nigeria Economy. The work employed Cobb Douglas Production
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