Efect of Foreign Exchange Rate Fluctuations on Nigerian Economy

Ufoeze, Lawrence Olisaemeka; Camilus, OKUMA, N.; Nwakoby, Clem; Alajekwu, Udoka Bernard

doi:10.26458/1814

Cited by 8 publications

(16 citation statements)

References 5 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Meaning that these variables jointly move together in the long run. This result corroborates the work of researchers such as Eze andOkpala (2014), Oiro (2015), Koirala (2018) and Ufoeze et al (2018), etc.…”

Section: Johansen Juselius Test For Co-integrationsupporting

confidence: 92%

“…The study recommended that macroeconomic policies aimed at enhancing sustainable economic development should not over concentrate at fighting inflation but should on other area of economic development such as input productivity and human capital development. Ufoeze et al (2018) study the effect of exchange rate fluctuations on Nigerian economy. Using a time series data covering the period of 1970 to 2012, OLS technique was employed to analyzed the secondary data on GDP, exchange rate, money supply, inflation arte and oil revenue.…”

Section: Positive Relationshipmentioning

confidence: 99%

“…This study will best be understood using the Solow growth model. This study adopted and modify the equation used by Ufoeze et al (2018). In their model, exchange rate, inflation rate money supply and oil revenue were used as dependent variables and growth rate of GDP was used as dependent variable.…”

Section: Model and Datamentioning

confidence: 99%

“…In their model, exchange rate, inflation rate money supply and oil revenue were used as dependent variables and growth rate of GDP was used as dependent variable. As a modification, this study adapted from Ufoeze et al (2018) and then included openness, foreign direct investment that are capable of influencing foreign exchange rate in Nigeria. This could be stated mathematically as follows: RGDP = f (EXC, INF, MS, OREV, OPN, FDI)…”

Section: Model and Datamentioning

confidence: 99%

See 3 more Smart Citations

Foreign Exchange Rate and Economic Growth Nexus: New Evidence from Nigeria (1981 to 2017)

2019

JESD

View full text Add to dashboard Cite

The paper estimates the impact of foreign exchange rate on economic growth of Nigeria. The study makes used of Autoregressive Distributed Lag model (ARDL) on time series Data, for the period 1981-2017. The data set on real effective exchange rate, inflation rate, money supply, lending interest rate, real GDP and foreign direct investment, oil revenue and trade openness (% of GDP) were tested for stationary using ADF and PP tests and established stationarity at I (1) for five variables and I (0) for two variables. The correlation test result shows that the highest correlation is between money supply and oil revenue while the lowest correlation is between inflation rate and foreign direct investment. The ARDL Co-integration test revealed the existence of long-run relationship among the variables. ARDL test results reveal that real effective exchange rate is negatively and significant in explaining economic growth in Nigeria in the long-run. In the short-run, the lag value of real effective exchange rate is insignificant in explaining the changes in the current rate of economic growth. in the same period, the lag value of money supply is negative and significant in explaining GDP. But in the long run it is positive and significant in explaining economic growth in Nigeria. The rate of inflation both in the short run and long run is negatively and significant in explaining GDP. The Error Correction Term value of 20.7% shows the speed of adjustment toward long-run equilibrium The findings of the study imply that interest rate in Nigeria is inflationary. Meaning that increase in the rate of interest rate will lead to an increase inflation rate. Therefore, the research study concludes that the impact of foreign exchange rate on the economic growth of Nigeria is negative and significant and that the monetary authorities should adopt flexible exchange rate in Nigeria.

show abstract

Section: Johansen Juselius Test For Co-integrationsupporting

confidence: 92%

Section: Positive Relationshipmentioning

confidence: 99%

Section: Model and Datamentioning

confidence: 99%

Section: Model and Datamentioning

confidence: 99%

See 2 more Smart Citations

Foreign Exchange Rate and Economic Growth Nexus: New Evidence from Nigeria (1981 to 2017)

2019

JESD

View full text Add to dashboard Cite

show abstract

“…Since the Nigerian has remained import-dependence on oil-supported, the fluctuation of oil prices would have effect on Nigeria's oil revenue (i.e. major source of income) [8]. Thus this research is faced with determining whether the crude oil price has any bearing in the exchange rate in Nigeria and other macroeconomic variables.…”

mentioning

confidence: 99%

Crude Oil Price and Exchange Rate Nexus: An Ardl Bound Approach

Musa¹,

Maijama’a²,

Muhammed³

2020

OALib

View full text Add to dashboard Cite

This study investigates the impact of crude oil price on exchange rate in Nigeria using an autoregressive distributed lag (ARDL) model covering the period from 1983-2017. The results showed that crude oil price has negative and significant impact on exchange rate in both the long run and the short run whereas oil revenue and Gross Domestic Products have significant positive impact on exchange rate also in both the long-run and the short-run periods. The findings suggested that crude oil price which is the focal point of the study, could affect exchange rate in the both the long-run and the short-run. Therefore the study concludes that crude oil price, oil revenue and Gross domestic Products are among the determinants of exchange rate in Nigeria.

show abstract

Evaluating the Influence of Foreign Exchange Policy Regime on the Construction Sector in Nigeria

Saka

Moyanga

2023

INTREST

View full text Add to dashboard Cite

In developing economies, foreign exchange policy regime (FEPR) play a critical role in the viability of all sectors of the economy. In Nigeria, the economy is dependent on foreign inputs from contracting services, technology, materials, expatriates, etc. Therefore, this study investigated the impact of FEPR on the performance of the construction sector in Nigeria. To achieve this goal, time series data was extracted from United Nations Statistics Division (UNSD) on the construction sector, gross domestic product (GDP) and FEPR for 50 years spanning from 1970 to 2019. The study uses econometric approach including tests of stationarity and co-integration as well as the generalized method of moment (GMM) to model the relationships between the variables. The study reveals that the 1986 FEPR reform had significant and negative effect on the construction sector output in Nigeria. This implies that the performance of the construction sector is affected by the state of the economy and government policy. This study proves that the foreign exchange policy regime does not significantly influence the construction industry during the period of review. It also ascertained that the development of the construction sector depends more on previous construction outputs and only altered due to oil export shock. Hence, this study recommends that sustainable construction development strategies should be implemented to eliminate construction sector challenges and reduce the effect of foreign exchange rate volatility on the construction sector. Finally, monetary and fiscal policies that can engender sustainable growth and development of the construction sector should be implemented.

show abstract

Efect of Foreign Exchange Rate Fluctuations on Nigerian Economy

Abstract: Abstract

Cited by 8 publications

References 5 publications

Foreign Exchange Rate and Economic Growth Nexus: New Evidence from Nigeria (1981 to 2017)

Foreign Exchange Rate and Economic Growth Nexus: New Evidence from Nigeria (1981 to 2017)

Crude Oil Price and Exchange Rate Nexus: An Ardl Bound Approach

Evaluating the Influence of Foreign Exchange Policy Regime on the Construction Sector in Nigeria

Contact Info

Product

Resources

About