Influence of Monetary Policy Variables on Manufacturing Firms: An Empirical Analysis of Nigerian Manufacturing Firms

Akaninyene Orok, John John, Itoro Ikoh, Timiepere Ogaga and AfomaJesus Orok

MPRA Paper from University Library of Munich, Germany

Abstract: This study examined monetary policy variables and their impact on the performance of selected manufacturing firms in Nigeria. The objectives were to evaluate how money supply, the monetary policy rate, interest rate, and exchange rate influence manufacturing firm performance in Nigeria, using Dangote Group as a case study. The study used the ordinary least squares (OLS) multiple regression method to test and estimate relevant equations. The results showed a positive and significant relationship between money supply and Dangote Group's performance; the monetary policy rate also had a positive and significant effect on Dangote companies, while the interest rate had a significant negative effect on their performance. The study therefore recommended that monetary authorities should improve current macroeconomic variables, such as money supply and inflation, to enhance manufacturing sector performance. Additionally, it suggested that monetary authorities should continue adjusting the monetary policy rate to promote stability and improve the performance of Nigeria’s manufacturing sector.

Keywords: monetary policy; manufacturing; Nigeria; monetary authorities (search for similar items in EconPapers)
JEL-codes: E52 O14 (search for similar items in EconPapers)
Date: 2021, Revised 2021
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Published in Calabar Journal of Finance and Banking 2.2(2021): pp. 12-22

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:87804

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