Exchange Rate Management and the Manufacturing Sector Performance in the Nigerian Economy

Ehinomen, Christopher

doi:10.9790/0837-0550112

Cited by 16 publications

(10 citation statements)

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“…Bleaney and Vargas (2009) also find evidence that, in emerging markets, currency devaluation depresses economic growth. Similar results are reported by Munthali et al (2010), Ehinomen et al (2012), Gylfason and Radetzki (1991), Choudhary and Chaudhry (2007), Blecker and Razmi (2008), Munthali et al (2010), Ehinomen et al (2012), Shahbaz, Islam, and Aamir (2012), Bahmani-Oskooee and Abera Gelan (2013) and Ilir (2006). These studies generally find that devaluations result in contractionary effects on economic growth in developing countries.…”

Section: Literature Reviewsupporting

confidence: 87%

Are Devaluations Expansionary in Laos?

Kyophilavong

Shahbaz²,

Lamphayphan

et al. 2018

Global Business Review

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This study investigates whether currency devaluation is expansionary for Laos. We combine cointegration and vector error correction method (VECM) Granger causality analysis to examine long-run and causal relationships among selected macroeconomic variables. Our results confirm the presence of cointegration among the variables and support expansionary effects of currency devaluation on economic growth of Laos. Government spending increases economic growth but money supply decreases the growth. World income is inversely linked with Laos’ economic growth. Our evidence supports the devaluation-led growth hypothesis.

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Section: Literature Reviewsupporting

confidence: 87%

Are Devaluations Expansionary in Laos?

Kyophilavong

Shahbaz²,

Lamphayphan

et al. 2018

Global Business Review

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“…A previous study mentioned that more than 18 percent of the household had increased their real income 2 to 3 times after five years of engagement in palm oil cultivation (Budidarsono et al, 2012). The manufacturing industries can create employment, which helps boost agriculture and diversify the economy to increase its foreign exchange earnings (Ehinomen, 2012). Figure 3 shows the location of palm oil plantations per province in Indonesia.…”

Section: Resultsmentioning

confidence: 99%

Could Palm Oil Plantation Increase Individual Expenditure? The Dutch Disease Implication in Indonesia

Siregar

Sihaloho

2021

Signifikan

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Indonesia is the largest palm-oil producing country, covering almost 80 percent of global production. With the extensive production capacity, this research seeks to analyze the linkages between palm oil production and its impact on the economy by the individual monthly expenditure. To reveal the connections, this research analyzes the Dutch Disease phenomenon in Indonesia, which explains how the non-tradable sector, palm-oil industry, affects the tradable sector like the manufacturing industry. The panel data variables are selected from 2011 to 2015 within 22 provinces to see the Dutch Disease's implications. As the model is suffered from the endogeneity, the correlation of explanatory variables with the error term, the research uses the Instrumental-Variable Regression method. The analysis indicates that Indonesia was not suffered from Dutch Disease. Therefore, palm oil production could increase individual expenditure. Finally, the extension of palm oil plantations could benefit Indonesia's economy without affecting other sectors.JEL Classification: E21, E24, O13, O44How to Cite:Siregar, C. D. T., & Sihaloho, E. D. (2021). Could Palm Oil Plantation Increase Individual Expenditure? The Dutch Disease Implication in Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 10(1), 77-92. doi: http://doi.org/10.15408/sjie.v10i1.15831.

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“…He pointed out that regardless of the alternative measures, the actual exchange rate misalignment and fluctuations will have an adverse impact on the growth of Nigeria's non-oil exports. Ehinomen and Oladipo (2012) studied the impact of exchange rate management on manufacturing growth in Nigeria and arrived at a seemingly perverse finding. By using ordinary least squares (OLS) multiple regression analysis and time series data over the period 1986 to 2010, the empirical results of the study indicated that exchange rate depreciation was part of the 1986 Structural Adjustment Policy (SAP), in which there was no significant relationship with the manufacturing industry's productivity during that period.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Based on the empirical evidence, Ehinomen and Oladipo (2012) suggested that the government should guide its exchange rate management policy in order to boost exchange rate appreciation and further condense the cost of production in the manufacturing sector that depends heavily on foreign inputs, while there should be simultaneously a total ban on the importation of consumer and intermediate goods that can be or are manufactured locally.…”

Section: Literature Reviewmentioning

confidence: 99%

The Transitional Relationship between Economic Growth and Exchange Rate in Ghana: An Empirical Approach

Abasimi

Xuan

Mohammed

2019

International Journal of Business, Economics and Management

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The motivation behind this study was to investigate empirically the transitional relationship between economic growth and the exchange rate in Ghana, viz, to what extent and magnitude does the exchange rate affect economic growth? The variables incorporated in the study were interest rate, inflation and direct foreign investment. The statistical results using the Phillips-Perron (PP) test of stationary disclosed that the variables were integrated in order of I(1) and I(0). Johansen cointegration (maximum eigenvalues) established the existence of at least two cointegration vectors and long-run relationships between the variables in the model. The output from the long and short-run estimates revealed the exchange rate to have a robust significant relationship with economic growth. It was recommended that government should embark on rigorous domestic economic transformation (monetary policies, infrastructure repositioning, adequate security etc.) as well as external export promotions to strengthen the economic fundamentals so as to attract foreign investment into the economy. It was also recommended that the Bank of Ghana should pay particular attention to inflation and interest rate volatilities to ensure and embed consumer and producer confidence.Contribution/Originality: This study contributes in the existing literature by illuminating the dynamism and robustness of exchange rate volatilities, and their interlinking causality with economic growth in Ghana. The study employed a new estimation methodology to establish both short and long-run connections between these economic fundamentals and internal economic development.

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Exchange Rate Management and the Manufacturing Sector Performance in the Nigerian Economy

Abstract: Since Nigeria is heavily factor-input import dependent, the inability to locally source the required inputs in the manufacturing

Cited by 16 publications

References 0 publications

Are Devaluations Expansionary in Laos?

Are Devaluations Expansionary in Laos?

Could Palm Oil Plantation Increase Individual Expenditure? The Dutch Disease Implication in Indonesia

The Transitional Relationship between Economic Growth and Exchange Rate in Ghana: An Empirical Approach

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