Manufacturing Sector Development in Sub-Saharan Africa: Does Monetary Policy Matter?

Hope Agbonrofo, A. Olusegun
{"title":"Manufacturing Sector Development in Sub-Saharan Africa: Does Monetary Policy Matter?","authors":"Hope Agbonrofo, A. Olusegun","doi":"10.32327/ijmess/12.2.2023.6","DOIUrl":null,"url":null,"abstract":"This study investigated the effect of monetary policy on the manufacturing sector value added in 24 sub-Saharan African (SSA) countries. The study is motivated by the persistent state of underdevelopment of the manufacturing sector in the region and the palpable dearth of empirical evidence on the sector’s response to monetary policy actions as suggested by theory. The study employed panel data from 1995 to 2020 and the framework of the panel ARDL model which is estimated using three dynamic panel estimators - Mean Group (MG), Pooled Mean Group (PMG), and Dynamic Fixed Effect (DFE). Findings from the study showed that the monetary variables are time sensitive and heterogeneous in their effects depending on the long or short-run. We document that while interest rate and the exchange rate had statistically significant negative impacts on manufacturing value added in the long-run only credit to the private sector had no real impact on manufacturing value added in the short and long-run. The implication is that policymakers have to conduct monetary policy in such a manner that mitigates the persistent rise in interest and the depreciation of the domestic currency exchange rates to boost manufacturing value added in the region.","PeriodicalId":150957,"journal":{"name":"International Journal of Management, Economics and Social Sciences","volume":"53 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2023-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Management, Economics and Social Sciences","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.32327/ijmess/12.2.2023.6","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0

Abstract

This study investigated the effect of monetary policy on the manufacturing sector value added in 24 sub-Saharan African (SSA) countries. The study is motivated by the persistent state of underdevelopment of the manufacturing sector in the region and the palpable dearth of empirical evidence on the sector’s response to monetary policy actions as suggested by theory. The study employed panel data from 1995 to 2020 and the framework of the panel ARDL model which is estimated using three dynamic panel estimators - Mean Group (MG), Pooled Mean Group (PMG), and Dynamic Fixed Effect (DFE). Findings from the study showed that the monetary variables are time sensitive and heterogeneous in their effects depending on the long or short-run. We document that while interest rate and the exchange rate had statistically significant negative impacts on manufacturing value added in the long-run only credit to the private sector had no real impact on manufacturing value added in the short and long-run. The implication is that policymakers have to conduct monetary policy in such a manner that mitigates the persistent rise in interest and the depreciation of the domestic currency exchange rates to boost manufacturing value added in the region.
撒哈拉以南非洲的制造业发展:货币政策重要吗?
本研究调查了货币政策对24个撒哈拉以南非洲国家制造业增加值的影响。这项研究的动机是,该地区制造业一直处于不发达状态,而理论表明,制造业对货币政策行动的反应明显缺乏经验证据。本研究采用1995 ~ 2020年的面板数据和面板ARDL模型框架,该模型使用三个动态面板估计量-平均组(MG)、混合平均组(PMG)和动态固定效应(DFE)进行估计。研究结果表明,货币变量具有时间敏感性,其影响取决于长期或短期。我们证明,虽然利率和汇率在长期内对制造业增加值有统计上显著的负面影响,但私营部门信贷在短期和长期内对制造业增加值没有实际影响。这意味着,政策制定者必须以这样一种方式实施货币政策,以缓解利率的持续上升和本币汇率的贬值,以提振该地区的制造业增加值。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
自引率
0.00%
发文量
0
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:604180095
Book学术官方微信