Ajide1 this paper investigates the role of frazer economic freedom index on fdi growth relationship over the period spanning 1980 through 2010 using annual time series data. The study postulates that external debt does not contribute to the economic growth of nigeria. To evaluate this hypothesis, annual time series data on manufacturing gross domestic product a proxy for economic growth, exchange rate, private foreign investment and. Impact of exchange rate on the nigeria economic growth free.
The impact of oil on nigerias economic policy formulation preamble economic policy is the actionstatement of the government pertaining to particular sectors of the economy, describing the intended objectives and how to achieve them. The population of nigeria is growing at a rate of 3. Chapter two of this impact of exchange rate on the nigeria economic growth research work is available. A multivariate regression approach was employed to. It covers the various exchange rate used in nigeria since 1990 to 2008. Apr 03, 2017 the study is structured to evaluate the nigeria exchange rate as the pilot of economic growth and development. An important conference on the nigerian inflation process. Impact of exchange rate on the nigeria economic growth.
The impact of exchange rate fluctuation on the nigerian. Ajide1 this paper investigates the role of frazer economic freedom index on fdigrowth relationship over the period spanning 1980 through 2010 using annual time series data. Jul 09, 2018 the effect of inflation and interest rate on economic growth of nigeria a case study of first bank abstract. It is the price of one currency in terms of another currency jhingan, 2005. Nigeria money supply m2 20002020 data 20212022 forecast. Public disclosure authorized nigeria economic report. Trade openess and economic growth in nigeria 1981 2009 an.
Quantitative analysis of the impact of exchange rate policies on nigerias economic growth. A multivariate regression approach was employed to estimate augmented growth models. Exchange rate is the price of one unit of the foreign currency in terms of the domestic currency. Effect of exchange rate fluctuations on the nigeria economy. For instance, obamuyi 2009 investigated the relationship between interest rate and economic growth in nigeria using time series data covering 19702006. To guide this study, the following questions were raisedwhat is the nexus between bank lending and economic growth.
Keywords macroeconomic, economic growth, investment, monetary policy and fiscal policy introduction. Effects of exchange rate movements on economic growth in. Macroeconomic determinants of economic growth in nigeria. In the period 19881997 which con stitutes the period of structural adjustment and eco nomic liberalisation, the qdp responded to economic adjustment policies and grew at a positive rate of 4. This research paper is centered on the nexus between exchange rate variation and economic growth in nigeria with emphasis to the purchasing power of the average nigerians and the level of international transaction. Despite the availability and expenditure colossal amount of foreign exchange derive mainly from its oil and gas resources, economic growth has been weak and the incidences of poverty has increased. Pdf exchange rate policy and nigerias economic growth. This research project which is on the impact of the nigerias exchange rate on economic growth since 1990 will be guided by the objective stated above. An empirical evaluation of the impact of exchange rate on. The impact of monetary policy on the economic growth of.
Impact of exchange rate fluctuation on the nigeria economic growth includes abstract and chapter one, complete project material available the impact of exchange rate fluctuation on the nigeria economic growth 1980 2010 abstract this research work is centred on the impact of exchange rate fluctuation on the nigerias economic growth with special emphasis on purchasing. The findings also shows that there is strong relationship between inflation and economic growth in nigeria, that exchange rate has positive impact on economic growth and that high interest rate discourages investment and hence forestalls economic growth. The role of central bank of nigeria sanusi lamido sanusi, con governor central bank of nigeria being a paper delivered at the inaugural memorial lecture in honour of late professor okefie uzoaga at the university of nigeria, nsukka, enugu state on july 12, 2011. Nigerian population growth and its implications for economic. Determinants of economic growth in nigeria kazeem b. Demographers estimated the population to be 91,178,000 in 1985. The nigeria economy has been experiencing over the years the problems of unemployment, price level instability, lack of sustainable economic growth, balance of payment disequilibrium, inability to mobilize domestic saving and unsatisfactory expansion of domestic output. Getting the policy response right matters as falling economic growth imposes a real human cost on the population. Th e result found that the interest rate has a slight impact on growth. The economy maintained its moderate rate of growth with real gdp growth of 3. Nigerian population growth and its implications for economic development. Exchange rate fluctuations have been of serious concern to the monetary authorities, policy makers and business tycoons of.
Effect of exchange rate fluctuations on manufacturing sector. Quantitative analysis of the impact of exchange rate policies. Measuring the economic growth of a country aims to assess whether the growth can cope with the growing demands of the society. Impact of interest rate on economic growth in nigeria. Atan2 this study investigates the effect of exchange rate movements on real output growth in nigeria.
This study examined t he impact of interest rate on economic growth in nigeria from 1990 to 20. This paper is set to contribute to the extant literature by investigating econometrically the existence or not of a longrun relationship between globalization and economic growth in. The commission on growth and development led by nobel laureate mike spence was established. This seems from the fact that every other facility and resources required for economic development is driven by the availability of human capital. An overview of the nigerian economic growth and development. The study aims at evaluating the link between inflationary rate and economic growth in nigeria. Abstract in this paper, we investigate both the long run and short run relationships between financial structure and economic. Pdf the impact of exchange rate regimes on economic growth. The study is structured to evaluate the nigeria exchange rate as the pilot of economic growth and development. Kogid, asid, lily, mulok, and loganathan 2012 researched the effect of exchange rates on economic growth by using nominal and real exchange rate. Further increases in money wage rate and money supply with a lag in effect were identified as the two most important factors that influenced the movement of prices during the period. To evaluate this hypothesis, annual time series data on manufacturing gross domestic product a proxy for economic growth.
It is the required amount of units of a currency that can buy another amount of units of another currency. Mehdi et al 2014 state that the effect of exchange rate fluctuations on economic growth varies in different countries asserting that one of the factors determining the way exchange rate fluctuations affect economic growth is the development level of each countrys financial markets revealing that new theories emphasize the high correlation. The study is therefore limited to the core economic growth in nigeria and not the socio political factors of the foreign exchange rate. Nigeria has maintained remarkable growth over the last decade, recording an average growth rate of 6. However, in the 1980s, gdp had negative growth rates. D, fca department of accountancy, enugu state university of science and technology, enugu state, nigeria. Population growth and economic development in nigeria 1981.
Such problems include high unemployment rate, low investment, high rate of inflation and unstable foreign exchange rate. Impact of exchange rate variation and inflation on. Percieved relationship between exchange rate, interest rate. This page provides nigeria money supply m2 actual values, historical data, forecast, chart, statistics, economic calendar and news. Pdf the impact of exchange rate regimes on economic. The commission on growth and development led by nobel laureate mike spence was established in april 2006 as a response to two insights.
Several researchers in the past have investigated the relationship between external debt, exchange rate and economic growth. But these studies have come out with diverse views without a consensus in their findings. Effects of exchange rate movements on economic growth in nigeria. Each report will provide an assessment of the current economic situation in the country and give special attention to selected topics of. Each report will provide an assessment of the current economic situation in the country and give special attention to selected topics of high policy relevance for nigeria. Terms and conditions using our service is legal and is not prohibited by any universitycollege. The role of entrepreneurship in transforming the nigerian. Impact of monetary policy of economic growth in nigeria. Aizenman 1994 has argued that exchange rate regime can influence economic growth through their effect on the rate of physical capital accumulation.
Nigeria recent economic developments the performance of the nigerian economy was mixed in 2001. An empirical evaluation of the impact of exchange rate on the nigeria economy ayodele thomas d. Onwuka department of economics, nnamdi azikiwe university, awka. The impact of monetary policy on the economic growth of nigeria. Exchange rate has a negative impact on the gdp because as it increases, the economic growth is. Is the effect of interest rate of economic growth rate. Trade openess and economic growth in nigeria 1981 2009. The main objective of this study is to investigate the effect of inflation and interest rate on economic growth of nigeria. Nbs, pwc analysis exports are likely to outpace imports on strong oil export revenues and shrinking import demand real gdp growth to reach 2. Impact of exchange rate fluctuation on the nigeria economic growth includes abstract and chapter one, complete project material available the impact of exchange rate fluctuation on the nigeria economic growth 1980 2010 abstract this research work is centred on the impact of exchange rate fluctuation on the nigerias economic growth with special. We also test for the nonlinear effect of population growth on economic growth and note that the introduction of interaction terms between population growth and dependency ratios as well as those between whether or not the population growth rate is less than 1. This study is designed to examine the impact of interest rate on nigeria. The main objective of this study is to examine the relationship between external debt, exchange rate and economic growth in nigeria.
This page provides nigeria gdp growth rate actual values, historical data, forecast, chart, statistics, economic calendar and news. Understanding the relationship between growth and employment. The exchange rate is the rate at which one currency is exchanged for another. It is a veritable instrument of economic management and therefore an important macroeconomic indicator. But the authors are not aware of an y study which examines the link between exchange rate regimes and eco nomic gro wth in nigeria in. Abstract background of the study over the years if has become established that the existence of an efficient human capital is the key to economic growth and development in any nation. This position finds supports in edwards 1993 who argues that investment will tend to be higher under a fixed exchange rate variability. Exchange rate er and economic growth eg proxied by real gross domestic product rgdp in bangladesh for a period of 41 years ranges from 1973 to 201 3 by using time s eries econometric technique.