AN ECONOMETRIC STUDY OF THE RELATIVE IMPACT OF MONETARY AND FISCAL POLICIES ON INDUSTRIAL OUTPUT IN NIGERIA

ABSTRACT

This work/study investigated the relative impact of monetary and fiscal policies on industrial output in Nigeria for the period 1979 – 2008. An exposition of monetary and fiscal policies in Nigeria for the period under study (1979 – 2008) showed that monetary policies as against fiscal policies have been more pronounced in the economy due to the fact that these class of policies. The simple linear multiple regression analysis was adopted to estimate the level of significance of various monetary and fiscal policies instrument employed in Nigeria. Using manufacturing output is a proxy for industrial development; the estimated model reveals that these policies have not been responsible for the average changes in the industrial development. Instead, some other variables such as legged petroleum output proved to be a significant dependent variable in determining industrial output.