Achieving Sustainable Economic Growth in Sub-Saharan African Countries Using the Tool of Monetary Policy Effectiveness

IF 1.7 Q3 BUSINESS, FINANCE

Journal of Central Banking Theory and Practice Pub Date : 2023-09-01 DOI:10.2478/jcbtp-2023-0027

A. Isibor, A. Omankhanlen, B. Ehikioya, G. Osuma, A. Oladipo, Adedoyin Bunmi-Alo, Kikiyanu Ajalaadebowale

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Abstract

Abstract The issue of achieving and sustaining a nation’s economic growth is an issue that is of concern to many nations of the world, especially the sub-Saharan African (SSA) nations. This was in line with the United Nations Sustainable Development Goal (SDG) 8 of Economic Growth. This study, therefore, examines how monetary policy tools can help the SSA governments achieve the SDG 8 goal and also sustain it. Relevant secondary data on sustained economic growth (GDPPC) (dependent variable) and interest rate, exchange rate, money supply, and inflation rate (independent variable) were gathered from the annual report of the Central Banks of the 48 SSA nations. The panel data year covers the period from 2016 to 2022. The unit root test confirms the variables to have a level integration order. The Hausman test suggests the use of fixed effect regression. The fixed effect regression shows that for the 48 SSA nations, interest rate, inflation rate, and money supply were positively significant in impacting GDPPC while exchange rate was negatively significant in impacting GDPPC. The study, therefore, recommends that import promotion, for example, should be avoided because it raises the exchange rate and lowers the value of currencies of the SSA nations.

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利用货币政策有效性工具实现撒哈拉以南非洲国家的可持续经济增长

实现和维持一个国家的经济增长是世界上许多国家，特别是撒哈拉以南非洲(SSA)国家关注的问题。这符合联合国关于经济增长的可持续发展目标(SDG) 8。因此，本研究探讨了货币政策工具如何帮助SSA政府实现可持续发展目标8并维持这一目标。相关的经济持续增长(gdp ppc)(因变量)和利率、汇率、货币供应量、通货膨胀率(自变量)等二手数据是根据48个SSA国家中央银行的年度报告收集的。面板数据年份涵盖2016年至2022年。单位根检验确认变量具有水平积分顺序。Hausman检验建议使用固定效应回归。固定效应回归表明，对于48个SSA国家，利率、通货膨胀率和货币供应量对GDPPC的影响为正显著，而汇率对GDPPC的影响为负显著。因此，该研究建议，应避免进口促进，因为它会提高汇率，降低SSA国家的货币价值。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Central Banking Theory and Practice BUSINESS, FINANCE-

CiteScore

2.80

自引率

57.10%

发文量

审稿时长

7 weeks

期刊介绍： Journal of Central Banking Theory and Practice is a scientific journal dedicated to publishing quality papers and disseminating original, relevant and applicable economic research. Scientific and professional papers that are published in the Journal of Central Banking Theory and Practice cover theoretical and practical aspects of central banking, monetary policy, including the supervision issues, as well as banking and management in central banks. The purpose of the journal is to educate the general public about the key issues that the central bankers globally face, as well as about contemporary research and achievements in the field of central banking theory and practice.