Money and output interaction in Nigeria an econometric investigation using multivarate cointegration technique

Abstract

This paper derives and estimates a Barro-type reduced-form equahonfor domestic real output from a simple structural model ofan open developing economy in which markets clear continuously and expectations are rational. The form in which open economy variables appeared was explicitly derived from an underlying structural model. The model was adapted to Nigerian economy by according an important role to imported intermediate goods. The empirical result provided support for the open economy model of output determination in Nigeria.