The interrelationship between the real, monetary, fiscal, and external sectors of the Nigerian economy is an issue of concern, as it will provide policymakers with insight on which of the sectors is potent in influencing output in the real sector, which little or no attention was given. This study, therefore, examines the interrelationships between these sectors in Nigeria between 2010Q1 and 2021Q1. Structural Equation Model (SEM) was employed. The study finds that monetary and fiscal sectors have a positive influence on the real sector output, while the external sector has a negative influence on the real sector output in Nigeria. It was found that only the monetary sector influenced real sector output significantly. This study recommends effective collaboration between the monetary and fiscal authorities in stimulating aggregate demand, boosting economic activities, and spurring economic growth in Nigeria using money supply, and external and domestic debt.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.