Money Supply and Inflation Effects on Economic Growth in Nigeria

Abstract

Covering a time span from 1990 to 2018, this study aims to check the effects of money supply and inflation on Nigerian economic growth by collecting data from Nigeria Statistical Bulletin. This research design uses dependent variable (RGDP) and the independent variables (INF, INTR MS and CPI). The estimated regression model shows a negative and significant relationship between coefficient of inflation and Real Gross Domestic Product (RGDP) at a significant level of 0.0011. Money Supply and RGDP is found to be negatively associated. R square value found to be 78%. This ensures goodness fit of this model.

At 5% significant level, the level regression passed the overall significant test (F-test), indicating that none of the estimated coefficient is equal to zero and that a linear association exists between the dependent variable (RGDP) and other independent variables (MS, INF, INT and CPI). The DW statistics of 1.96 indicate the absence of auto-correlation.