Monetary Policy: The Case of Industrial Output of Selected Developing African Economies


Published: 2022-08-24

Page: 287-301

Ogbonna, Kelechukwu Stanley *

Nnamdi Azikiwe University, Awka, Nigeria.

Anaemena, Hart Chigozie

First Bank PLC, Nigeria.

Anyanwu, Felicia Akujinma

Nnamdi Azikiwe University, Awka, Nigeria.

Okechukwu, Pius Akwam

UBA PLC, Nigeria.

Anyamaobi, Chukwuemeka

River State University, Port Harcourt, Nigeria.

Okafor, Tochukwu Gloria

Nnamdi Azikiwe University, Awka, Nigeria.

*Author to whom correspondence should be addressed.


We evaluate the monetary policy effect on Industrial Output. Data were sourced from World Bank Data Atlas and countries Central Bank Annual bulletin for interest rate (IntR), cash reserve ratio (CRR), inflation rate (INFR), money supply (M2) and manufacturing output (MO) from 1986 to 2021. The used ARDL Co-integration, ARDL regression and ARDL Panel regression. Monetary policy has significant relationship with manufacturing output in the three-individual developing African countries; while, monetary policy was however unable to facilitate a significant change in manufacturing output of the three countries’ economies combined. Thus, industrial output is influenced by monetary policy in the individual countries but does not influence industrial growth in the combined selected developing African economies. Long run relationship exists between monetary policy and industrial output represented by manufacturing output for individual countries and the three countries’ economies combined. Hence, monetary policy has long run effect on manufacturing output of both the individual countries and the three countries combined. Regulatory authorities need to harmonize uniform African cash reserves of banks, interest rates and increase money supply that facilitates easily accessed loans and funds by manufacturing/industrial outlets to enhance manufacturing output in Africa.

Keywords: Money supply, industrial output, manufacturing output, reserve ratio

How to Cite

Stanley, O. K., Hart Chigozie, A., Akujinma, A. F., Pius Akwam, O., Chukwuemeka, A., & Gloria, O. T. (2022). Monetary Policy: The Case of Industrial Output of Selected Developing African Economies. Asian Research Journal of Current Science, 4(1), 287–301. Retrieved from


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