The impact of exchange rate volatility on the Nigerian economic growth: An empirical investigation

Ehikioya, Benjamin Ighodalo

doi:10.22367/jem.2019.37.03

Cited by 22 publications

(25 citation statements)

References 26 publications

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“…The result implies that the huge inflow of foreign exchange arising from high price of oil exports enables procurement of production inputs, leading to higher level of productivity. This is consistent with the outcomes of Jin (2008), Omojolaibi (2014), Akinlo and Apanisile (2015), Ebele (2015) and Ehikioya (2019). However, lagged oil price [OPR (−1)] proves a substantial impediment to output growth.…”

Section: Long-run Regression Resultssupporting

confidence: 83%

“…The observed positive effect of FDPT on economic growth provides weak support for finance-leading hypothesis, an indication that the banking sector is not significantly supporting the growth of real activities in the country. The positive result is at variance with the report of which suggests that financial sector activities in Nigeria retard economic activities but aligns with Ehikioya (2019) and Adeleye et al (2020) which posit that finance is a positive contributor to real sector activities.…”

Section: Long-run Regression Resultscontrasting

confidence: 66%

“…Finally, the coefficients of the current and lagged values of inflation, though negative, are statistically not significant in influencing growth. These outcomes contradict Abbas et al (2014), Okoye et al (2018) and Ehikioya (2019) that inflation is a negative predictor of economic growth but align with the positive outcome documented in . The model diagnostics reveal that the R-squared value of 0.812 indicate that 81.2% variation in growth is explained by the regressors, the F-statistic (4.033608) also indicates that the regressors are jointly significant in explaining economic growth while the Durbin-Watson (D-W) statistic of 2.224311 indicates existence of no serial correlation.…”

Section: Long-run Regression Resultsmentioning

confidence: 56%

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Analyzing the Energy Consumption and Economic Growth Nexus in Nigeria

Okoye

Omankhanlen²,

Okoh³

et al. 2020

IJEEP

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Public and private sectors across the globe formulate and implement policies that target growth of their operations. It is of essence therefore that economic managers and other stakeholders identify and engage key factors that promote economic activities in policy formulation. The connection between economic performance and energy utilization is acknowledged in the literature, but empirics on the nature of this relationship produce mixed outcomes thereby suggesting the need for more research. Using the auto-regressive distributed lag method, this study estimates the effect of energy consumption on economic growth in Nigeria between 1981 and 2017, incorporating financial development, gross fixed capital formation and inflation for enhanced robustness. The results indicate that energy consumption and gross fixed capital formation (proxy for infrastructure) significantly determine growth of economic activities in Nigeria. The study also presents empirical support for delayed response of an endogenous variable to its own shocks as well as shocks to explanatory variables. It therefore asserts that energy consumption is a major determinant of economic growth in Nigeria, and aligns with the energy-led hypothesis. The observed positive impact electricity and capital consumption provides empirical support for the endogenous growth theory. Increased government and private sector investment in energy and infrastructural development is strongly advocated.

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Section: Long-run Regression Resultssupporting

confidence: 83%

Section: Long-run Regression Resultscontrasting

confidence: 66%

Section: Long-run Regression Resultsmentioning

confidence: 56%

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Analyzing the Energy Consumption and Economic Growth Nexus in Nigeria

Okoye

Omankhanlen²,

Okoh³

et al. 2020

IJEEP

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“…Döviz kuru oynaklığının ekonomik büyüme üzerindeki etkisini araştıran çalışmalardan bazıları konuyu spesifik bir ülke özelinde ele alan ve zaman serisi analizi tekniklerinden faydalanan çalışmalar (Ehikioya, 2019;Selimi ve Selimi, 2017;Tule, Victor, Uwawunkonye, Fumilad ve Nathaniel, 2020;Özata, 2020) iken bazıları ise bu çalışmada olduğu ve örnekleri aşağıda detaylı verildiği üzere panel veri analizi tekniklerinden faydalanarak birden çok ülkeyi analize dahil eden çalışmalardır. Literatürdeki çalışmaların genel bulguları döviz kuru volatilitesi ile ekonomik büyüme arasındaki ilişkiye net bir yorumlama getirememektedir.…”

Section: Literatürunclassified

Döviz Kuru Oynaklığı ve Ekonomik Büyüme İlişkisine Yeniden Bakış

Ağaslan

Alkan

2021

Ankara Hacı Bayram Veli Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi

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Bu çalışmada literatürde döviz kurundaki belirsizliğin ölçüsü olarak kabul edilen oynaklığın ekonomik büyüme üzerindeki etkisi araştırılmıştır. Gelişmiş ve gelişmekte olan ülkeler ayrımıyla 28 ülke için 2002 -2019 dönemi verileri ile hem zaman serisi analizi hem de panel veri analizi uygulanmıştır. Ülkelerin oynaklık serileri için GARCH modellemesinden faydalanılmış ve panel veri analizi çalışmalarında sıklıkla ortaya çıkan yatay kesit bağlanım sorununu dikkate alan panel düzeltilmiş standart hatalar (PCSE) tahmincisi ile analiz gerçekleştirilmiştir. Çalışmadan elde edilen bulgular gelişmekte olan ülkelerde döviz kuru oynaklığının ekonomik büyüme üzerindeki negatif etkisinin gelişmiş ülkelere kıyasla çok yüksek olduğunu göstermiştir. Çalışmada eklenen kontrol değişkenlerinden elde edilen bulgularla desteklenen bir husus; kurun volatilitesinin kurun seviyesinden daha fazla oranda ekonomik büyüme üzerinde negatif etki yaptığıdır. Ayrıca gelişmekte olan ülkelerde beşerî sermayenin ekonomik büyümeye katkısı negatif iken gelişmiş ülkelerde bu etkinin pozitif olduğu tespit edilmiştir. Bulgulara paralel olarak, gelişmekte olan ülkelerde yoğun enerji ve hammadde ithalatına bağlı üretim stratejilerinin gözden geçirilerek dışa bağımlılığın azaltılmasına yönelik politikalara önem verilmesi gerekliliği değerlendirilmektedir.

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“…However, since the early 1970s, when the world experienced an oil boom, oil exporting countries in the region relegated the importance of agriculture and other parts of the economy to become a mono-cultured economy. Since then, these countries have been generating a higher percentage of their foreign earnings from crude oil transaction at the international oil markets (Ehikioya, 2019). At the global oil markets, the America dollar is the most tradable and acceptable legal tender for invoicing and settlement, which means any fluctuations in oil prices in addition to the America dollar, could manipulate the exchange rates of trading countries differently (Olomola and Adejumo, 2006;Salisu and Mobolaji, 2013).…”

Section: Introductionmentioning

confidence: 99%

Oil Price Fluctuations and Exchange Rate in Selected Sub-Saharan Africa Countries: A Vector Error Correction Model Approach

Ehikioya

Omankhanlen²,

Babajide³

et al. 2020

IJEEP

Self Cite

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This study employs the Johansen cointegration and the vector error correction model (VECM) to assess the dynamic relationship that exists between oil price fluctuations and the real exchange rate in selected Sub-Saharan Africa countries from January 2004 to December 2017. The result of the monthly data analysis provides evidence to support a cointegration between oil prices and the real exchange rate in sub-Saharan oil dependent nations. The results of the study established a long-run equilibrium connection between fluctuations in oil price and the real exchange rate. Importantly, the study demonstrates the significant power of oil prices to predict the movement of real exchange rates in Nigeria, Angola, the Republic of Congo, Equatorial Guinea and Gabon. This study has implications not only for investors and industry leaders but also for policymakers responsible for the growth and stability of the economy. The results of this study also attest to the need for urgent economic diversification to other sectors of the economy both to reduce the negative influence of oil price fluctuations and to boost economic growth.

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The impact of exchange rate volatility on the Nigerian economic growth: An empirical investigation

Cited by 22 publications

References 26 publications

Analyzing the Energy Consumption and Economic Growth Nexus in Nigeria

Analyzing the Energy Consumption and Economic Growth Nexus in Nigeria

Döviz Kuru Oynaklığı ve Ekonomik Büyüme İlişkisine Yeniden Bakış

Oil Price Fluctuations and Exchange Rate in Selected Sub-Saharan Africa Countries: A Vector Error Correction Model Approach

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