Percieved Relationship between Exchange Rate, Interest Rate and Economic Growth in Nigeria: 1970-2010

Obansa, S. A. J.; Okoroafor, O. K. D; Aluko, O. O; Eze, Millicent Adanne

doi:10.11634/232907811301374

Cited by 33 publications

(31 citation statements)

References 5 publications

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“…Interest rate has a positive impact on economic growth at 1%. This result is consistent with the results of Chete (2006); Obamuyi (2009) and Obansa et al (2013). Gross capital formation has a positive impact on economic growth at 1%.…”

Section: Discussion Of Findings Conclusion and Recommendationssupporting

confidence: 92%

Modelling Economic Growth Function in Nigeria: An ARDL Approach

Okafor

Shaibu

2016

Asian Journal of Economics and Empirical Research

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The objectives of the study were to identify the significant variables that underlie economic growth in Nigeria, ascertain the stability of the economic growth model in Nigeria over the sample period, and examine the forecasting performance of the linear dynamic model. This study applies a linear dynamic model based on Pesaran et al. (2001) multivariate autoregressive distributed lag (ARDL) modelling technique to analyze the short-run and long-run dynamics of economic growth in Nigeria over the sample period between 1986 and 2013 using quarterly data. The empirical results show that economic growth in Nigeria finds explanation in adaptive expectations. The main determining variables of economic growth in Nigeria in the short-run and long-run are expected economic growth, population and trade openness. To achieve sustainable economic growth, it is suggested that government policies directed at improving the performance of the economy should largely consider the short-run and longrun behaviour of these variables and the policies should be pursued with high degree of transparency.

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Section: Discussion Of Findings Conclusion and Recommendationssupporting

confidence: 92%

Modelling Economic Growth Function in Nigeria: An ARDL Approach

Okafor

Shaibu

2016

Asian Journal of Economics and Empirical Research

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“…It determines the relative prices of domestic and foreign goods, as well as the strength of external sector participation in the international trade. Exchange rate regime and interest rate remain important issues of discourse in the International finance as well as in developing nations, with more economies embracing trade liberalization as a requisite for economic growth (Obansa, Okoroafor, Aluko and Millicent, 2013). In Nigeria, exchange rate has changed within the time frame from regulated to deregulated regimes.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Exchange Rate Fluctuation on the Nigerian Economic Growth: an Empirical Investigation

Adeniran¹,

Yusuf²,

Adeyemi³

2014

IJARBSS

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(β =0.014, t = 1.783, Pns) this is affirms previous studies that developing countries are relatively better off in the choice of flexible exchange rate regimes. The result also indicated that interest rate and rate of inflation have negative impact on economic growth but not significant with Pns) and Pns) respectively. Therefore, the paper recommended that government should encourage the export promotion strategies in order to maintain a surplus balance of trade and also conducive environment, adequate security, effective fiscal and monetary, as well as infrastructural facilities should be provided so that foreign investors will be attracted to invest in Nigeria

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“…The result showed that exchange rate fluctuation has a positive effect on the economic growth. Obansa, Okoroafor, Aluko and Millicent (2013) also examined the relationship between exchange rate liberalization and economic growth in Nigeria from 1970-2010. The result indicated that exchange rate liberalization has a strong impact on economic growth and has Journal of Public Management Research ISSN 2377-3294 2019 also promoted economic growth in Nigeria.…”

Section: Review Of Related Literaturementioning

confidence: 99%

“…This has also been a major point of argument among academics. Some scholars like Orji, Ogbuabor & Okeke (2018), Isibor, Olokoyo, Arogundade, Osuma & Ndigwe (2019), Aliyu (2011), Asher (2012), and Obansa, Okoroafor, Aluko and Millicent (2013), are of the opinion that deregulated or fluctuating exchange rage have positively influenced developing economies like Nigeria, while other scholars like Tams-Alasia, Okoye & Ejemegovwi (2018), David, Umeh and Ameh (2010), Eichengreen and Leblang (2003), Servén (2003), Arize, Osang, and Slottje (2000), and Eme and Johson (2012) strongly believed that deregulated exchange rate effects developing economies negatively. In view of this, this work seeks to carry out a pre and post deregulation analysis on some selected macro economic variables such as Balance of Payment and Real Sector performance proxied by Real Gross Domestic Product (RGDP) from 1960 to 1985 and 1986 to 2011, ie 25 years before and 25 year after deregulation in Nigeria.…”

Section: Introductionmentioning

confidence: 99%

A Comparative Analysis of Adjustment of Nigerian Selected Macro Economic Variables to Deregulated Exchange Rate System

Amakor¹,

Onyinye²

2019

JPMR

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This study is a comparative analysis of how Nigerian macro economic variables of Balance of Payment and Real Sector performance (surrogated by Real Gross Domestic Product) reacted to exchange rate deregulation in Nigeria. One of the reasons why countries deregulate their exchange rate is to avail themselves the benefits of international trade, and the international trade transaction of every nation is depicted in its balance of payment position. In order to ascertain the significance of Naira deregulated exchange rate on the selected variables, a pre and post deregulation analyses were carried out using Paired Sample T Test staring from 1960 to 1985 as pre deregulation period and 1986 to 2011 as post deregulation period. The result revealed that both Balance of Payment and Real Sector Performance reacted significantly to exchange rate deregulation. While the influence of deregulation of exchange rate on Balance of Payment was negative, it showed a positive influence on Real Sector performance. The researchers concluded that deregulation of exchange rate did not increase the Nigerian general export, but oil export only, which is also an indication that Nigerian domestic industries did not contribute significantly to the country's export level. We recommend that the monetary authority can consider placing a crawling peg on Naira exchange rate level in order to regulate the level of currency depreciation; this will reduce the cost of production for the domestic industries as most of their raw materials are imported. 2 Again the export ability of the Nigerian domestic industries can be enhanced by granting them export incentives such as free international packaging and external credit guarantee.

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Percieved Relationship between Exchange Rate, Interest Rate and Economic Growth in Nigeria: 1970-2010

Cited by 33 publications

References 5 publications

Modelling Economic Growth Function in Nigeria: An ARDL Approach

Modelling Economic Growth Function in Nigeria: An ARDL Approach

The Impact of Exchange Rate Fluctuation on the Nigerian Economic Growth: an Empirical Investigation

A Comparative Analysis of Adjustment of Nigerian Selected Macro Economic Variables to Deregulated Exchange Rate System

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