Pages: (169-184 )
Abstract
The Nigerian economy has remained vulnerable to external shocks as a result of the failure to accelerate diversification and economic change and thus benefit from globalization's technology-driven dynamism. Investment's growth in monetary policy and development was a recurring theme in the literature. Failure to achieve structural change in order to meet the demands of twenty-first-century economies, developing economies around the world face growth challenges. Hence, this study investigated the effect on monetary policy on investment growth in Nigeria over the period 1986 – 2020. The study employs Augmented Dickey-Fuller and Phillips Perron unit root tests to test the stationarity of the dataset obtained from the Nigeria Bureau of Statistics and the Central Bank of Nigeria. Autoregressive distribution lag model and error correction model are employed to identify both the long run and the short run dynamics of the variables. The results of the analysis showed that a long run effect 2 2 (Adj. R = 0.413; F = 5.652, P-value = 0.001) and also short run effect (Adj. R = 0.427 (4, 30) ; F = 5.924, P-value = 0.007) between monetary policy and investment growth even (4, 30) though none of the proxies of monetary policy was significant. Hence, the study concluded that monetary policy has a significant effect on investment growth in Nigeria. The study recommended that other aspect of Nigeria aside monetary policy should be considered to promote and increase the investment growth of Nigeria. Monetary policies should be used to foster a competitive investment that attracts private sector investments, promoting long-term economic growth
Keywords: Growth, Investment, Investment Growth, Monetary Policy, Nigeria Economy,