arbiter
JournalsPricingAccount

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

Hope Agbonrofo & Ajibola Olusegun

International Journal of Management, Economics and Social Sciences2023https://doi.org/10.32327/ijmess/12.2.2023.6article
AJG 1
Weight
0.45

What the paper says

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.

2 citations

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.32327/ijmess/12.2.2023.6

Or copy a formatted citation

@article{hope2023,
  title        = {{Manufacturing Sector Development in Sub-Saharan Africa: Does Monetary Policy Matter?}},
  author       = {Hope Agbonrofo & Ajibola Olusegun},
  journal      = {International Journal of Management, Economics and Social Sciences},
  year         = {2023},
  doi          = {https://doi.org/https://doi.org/10.32327/ijmess/12.2.2023.6},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

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

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.45

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.27 × 0.4 = 0.11
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.