Journal of Economics and Business

ISSN 2615-3726 (Online)

ISSN 2621-5667 (Print)

Published: 19 September 2018

Importance of Monetary Policy in Côte d’Ivoire’s Economic Growth

Diabate Nahoussé

Université Alassane Ouattara, Côte d’Ivoire

Download Full-Text Pdf

10.31014/aior.1992.01.03.30

Abstract

Studies analyzing the link between monetary policy and the growth of real production in WAEMU and particularly in Côte d'Ivoire are still very rare. This study analyzes the relationship between monetary policy and economic growth in Côte d'Ivoire. The data come from the World Bank and the BCEAO and cover the period 1980-2012. The ARDL approach and the Toda-Yamamoto causality test are used. The interest rate has a negative and significant influence on economic growth in Côte d'Ivoire, while inflation and the money supply ratio have a positive and significant effect. In addition, there is a two-way causality between these indicators and economic growth in Côte d'Ivoire. It is necessary to monitor the evolution of the fundamental macroeconomic variables of the Ivorian economy simultaneously and this within the overall framework of WAEMU.

References

  1. Adigwe, P. K., Echekoba, F.N., & Onyeagba, J.B.C. (2015). Monetary Policy and Economic Growth in Nigeria: A Critical Evaluation. IOSR Journal of Business and Management, Volume 17, Issue 2.Ver. II , PP 110-119

  2. Ahmad, D., Afzal M., & Ghani U., (2016). Impact of Monetary Policy on Economic Growth Empirical Evidence of Pakistan.  International Journal of Applied Economic Studies, Vol. 4, Issue 6, pp.1-9.

  3. Alavinasab, S.M. (2016). Monetary policy and economic growth a case study of Iran. International Journal of Economics, Commerce and Management, Vol. IV, Issue 3

  4. Ayodeji, A., & Oluwole, A. (2018). Impact of Monetary Policy on Economic Growth in Nigeria. Open Access Library Journal, Volume 5, e4320

  5. Berg, M.A., & Miao, Y. (2010). The real exchange rate and growth revisited : the Washington ton consensus strikes back? [G1] Working Paper, Washington DC.[G2] 

  6. Engle, R.F., & Granger, C.W.J. (1987). Cointegration and error correction: representation, estimation, and testing. Econometrica, Vol. 55, N°2, pp. 251-276.

  7. Fisher, S., (1991). Growth, macroeconomics and development. NBER, Macroeconomics Annual, Vol.6, pp. 329-364, Cambridge: MIT-PRESS.

  8. Friedman, M. (1968). The Role of Monetary Policy. The American Economic Review, Vol. 58, N°.1, pp. 1-17.

  9. Ghorbani, M., & Motallebi, M. (2009). Application Pesaran and Shin Method for Estimating Irans' Import Demand Function. Journal of Applied Sciences, Vol. 9, N°6, pp.1175-1179.

  10. Giblova, M.,N. (2015). Impact of Monetary Policy of the Central Bank on the Economic Growth in Russia in the Conditions of Unstable Economy. Review of European Studies, Vol. 7, No. 10.

  11. Keynes, J.M. (1936). Théorie Générale de l'Emploi de l'Interet et de la monnaie, version française de Jean de Largentaye (1977). Editions Payot, Paris.

  12. Lucas, R.E.Jr. (1970). Capacity, overtime, and empirical production functions. American Economic Review, Vol. 60, N°2, pp. 23-27.

  13. Mallaye, D. (2009). Reformes monétaires et croissance économique en zone CEMAC. MPRA paper, N°. 19621.

  14. Mundell, R. (1995). Exchange Rate Systems and Economic Growth. Rivista de Politica Economica, Vol. 85, N°6, pp. 1-36.

  15. Narayan, P.,K. (2005). The saving and investment Nexus for China: Evidence from cointegration tests. Applied Economics, Vol. 37, N°.17, pp. 1979-1990.

  16. Nelson, C.R., & Plosser, C.I. (1982). Trends and random walks in macroeconomic time series. Journal of Monetary Economics, Vol. 10, pp. 139-162.

  17. Nwoko, N., M., Ihemeje, J.C., & Anumadu, E. (2016). The Impact of Monetary Policy on the Economic Growth of Nigeria. AFRREV, 10 (3), S/NO 42.

  18. Pesaran, M.H., Shin, Y., & Smith, R.J., (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, Vol. 16, N°3, pp 289-326.

  19. Precious, C., & Palesa, M.-K. (2014). Impact of Monetary Policy on Economic Growth: A Case Study of South Africa. Mediterranean Journal of Social Sciences, Vol 5 No 15.

  20. Srithilat, K., & Sun, G., (2017). The Impact of Monetary Policy on Economic Development: Evidence from Lao PDR. Global Journal of Human-Social Science: E Economics, Volume 17 Issue 2.

  21. Sulaiman, L.A., & Migiro, S.O. (2014). The nexus between monetary policy and economic growth in Nigeria: a causality test. Public and Municipal Finance, 3(2).

  22. Tobin, J., (1965). Money & Economic Growth, Econometrica, Vol. 33, N°.4, pp. 671-684.

  23. Toda, H.Y., & Yamamoto, T., (1995). Statistical inference in vector autoregression with possibly integrated processes. Journal of Econometrics, Vol. 66, N° 1-2, pp. 225-250.

  24. Twinoburyo, E.N., & Odhiambo, M.N. (2016). Monetary policy and economic growth in Kenya: the role of money supply and interest rates. Unisa economic research working paper series, 11/2016.

  25. Twinoburyo, E.N., & Odhiambo, M.N. (2018). Monetary Policy and Economic Growth: A Review of International Literature. Journal of Central Banking Theory and Practice, 2, pp. 123-137.

  26. Zhang Y., & Shen, W., (2017). Study on the Relationship between Monetary Policy, Fiscal Policy and Economic Growth based on VAR model. Boletín Técnico, Vol.55, Issue 20, pp.359-364.

 

 

 

 

 

Inserted: W

Deleted:w

About Us

The Asian Institute of Research is an online and open-access platform to publish recent research and articles of scholars worldwide. Founded in 2018 and based in Indonesia, the Institute serves as a platform for academics, educators, scholars, and students from Asia and around the world, to connect with one another. The Institute disseminates research that is proven or predicted to be of significant influence for the general public.

Stay Connected

  • Instagram - Black Circle
  • Facebook - Black Circle
  • LinkedIn - Black Circle

Contact Us

Please send all inquiries to the email:

editorial@asianinstituteofresearch.org

Business Address:

5th Floor, Kavling 507, Fajar Graha Pena Tower, Jl. Urip Sumohardjo No.20, Makassar, Indonesia 90234

Copyright © 2018 The Asian Institute of Research. All rights reserved