Impact of Money Market Development on Economic Growth in Nigeria
Abstract
The study examined the impact of money market development on economic growth in Nigeria. The data for the study were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin,2023 and the international financial statistics (IFS). The methods of data analyses include the ordinary least squares multiple regression and the error correction mechanism on a time series data covering the period of thirty years (1994-2023). The findings of the study are that, Treasury bills have a positive and significant impact on economic growth (proxied by gross domestic product growth rate, Commercial papers have positive and significant impact on gross domestic product rate, Certificate of deposit has negative and significant impact on gross domestic product growth rate and Inflation rate has negative and insignificant impact on gross domestic product growth rate. A major recommendation of the study is that The Central Bank of Nigeria should ensure that laws regulating the treasury bills be adhered to in order to improve performance.
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