The paper employed time sequence data from 1971 to. One argument in defense of ols regressions of economic growth on the real exchange rate is that the direction of the possible reverse causality, i. If the price is elastic especially in the long run, the greater the percentage in demand and vice versa. The impact of exchange rate fluctuation on the nigerian economic. Exchange rate fluctuation and sustainable economic growth in nigeria. If there is a depreciation in the value of the pound, the impact depends on the elasticity of demand. This a quantitative increase in the monetary value of a country gross domestic product over time usually measured within the fiscal year. Pdf this research work is centered on the impact of exchange rate fluctuation on the nigerias economic growth from 1986 to 2015. As a result of study was found out that nigerian authorities should set interest. This research work is centered on the impact of exchange rate fluctuation on the nigeria s economic growth from 1986 to 2015. The impact of the real exchange rate changes on export. The impact of exchange rate fluctuation on the nigerian.
Although, some studies have affirmed the existence of relationships between the construction sector and the aggregate economy and other sectors of the economy in nigeria 8, 1926, research into the impact of economic fluctuations on the construction sector growth and performance in nigeria. The impacts of fluctuations in oil prices on economic growth and their mechanism in oilexporting countries differ from those in the oilimporting countries moshiri and banihashem, 2012. The effect of exchange rate fluctuations on the nigeria economy. Exchange rate plays an increasingly significant role in any economy as it directly affects domestic price level, profitability of traded goods and services, allocation of resources and investment decision. The conglomerate sector has been contributing greatly to the development of the nigerian economy since 1800s and has been the fore runner in manufacturing. This research work is centred on the impact of exchange rate fluctuation on the nigerias economic growth with special emphasis on purchasing power of the average nigeria and the level of international trade transaction. Pdf on jan 1, 2017, felicia akujinma anyanwu and others published exchange rate policy and nigeria s economic growth. It is worth mentioning that the impact of exchange rate fluctuation on international trade depends but not limited to. Click the download now button to get the complete project work instantly. Home economics project topics and materials impact of exchange rate fluctuation on economic growth in nigeria 20002015.
See below for the abstract, table of contents, list of figures, list of tables, list of appendices, list of abbreviations and chapter one. This study is undertaken to examine the impact of exchange rate on economic growth of india during 1987 to 2014. Effects of exchange rate fluctuations on economic growth of nigeria. Impact of exchange rate on economic growth in nigeria. Effect of foreign exchange rate fluctuations on nigerian. The exchange rate as has been stated in the previous chapter is the price of the one currency in terms of other currencies. Imperatives of economic fluctuations in the growth and. Pdf the study investigated the impact of exchange rate fluctuation on selected economic sectors of the nigerian economy. Asher 2012 examined the impact of exchange rate fluctuation on the nigeria economic growth for period of 1980 2010. Exchange rate is the rate of transformation of one currency to another. The result showed that real exchange rate has a positive effect on the economic growth.
The impact of exchange rate fluctuations on private. Impact of interest rates on foreign direct investment. The empirical literature is equally unsettled regarding the effects of exchange rate volatility on economic growth. It is therefore necessary to evaluate the effects of exchange rate fluctuations on output growth and price inflation. Pdf the impact of exchange rate fluctuations on the. How does inflation affect the exchange rate between two. This study investigated the effect of exchange rate fluctuations on nigerian economy. An analysis of the impact of exchange rate fluctuations on economic growth of nigeria prepared by umar aliyu shuaibu 20156331 we certify the thesis is satisfactory for the award of the degree of master of science in economics examining committee assoc. Pdf impact of exchange rate fluctuation on selected economic. This paper attempts to contribute to existing literature by investigating the impact of bank credit on economic growth in nigeria via the reduced vector autoregressive var. A threshold cointegration analysis nwachukwu et al. The effect of the exchange rate on business depends on several factors. Effect of exchange rate fluctuations on manufacturing.
Due to its impact on business and the economy at large, investors and businessmen would prefer a stable exchange rate to a volatile one. Effects of exchange rate fluctuations on economic growth. Download the complete economics project topic and material chapter 15 titled impact of exchange rate fluctuation on the economic growth of nigeria here on projects. An empirical evaluation of the impact of exchange rate on. Exchange rate, interest rate, inflation rate, economic growth, liberalization and. The aim of this study is to investigate the impact of exchange rate fluctuation on. To check the reality of relationship between exchange rate and nigeria economy. Impact of exchange rate fluctuation on nigerias economic growth 19812015, full project materials. Exchange rate fluctuation on nigeria economic growth.
See below for the abstract, table of contents, list of figures, list of tables, list. Empirical study of a set of developing countries during the period 19742006 majidah ashour department of economics, faculty of economics and administration, university of malaya, kuala lumpur, malaysia correspondence m. Pdf the impact of exchange rate fluctuation on the. Var approach nnanna philemon azu 1, alireza nasiri 2 1. The aim of this study is to investigate the impact of exchange rate fluctuation on economic growth in nigeria within the context of four profound theories. Pdf this study investigated the effect of exchange rate fluctuations on. Download the complete economics project topic and material chapter 15 titled impact of exchange rate fluctuations on the nigerian economic growth here on projects.
Impact of exchange rate on agriculture and manufacturing. Pdf effect of foreign exchange rate fluctuations on nigerian. In order to achieve this, the following are the specific objectives. The main type of data used in this study is secondary. Exchange rate fluctuation on nigeria economic growth is an important economy metric as it reflects underlying strength and competitiveness with world economies asinya and takon, 2014. It can impact the host economy through a variety of. Effect of the exchange rate on business economics help. The effect of the recent global economic meltdown on. Effects of exchange rate movements on economic growth in. The impact of exchange rate regimes on economic growth. According to the eia global, economic performance remains highly correlated with oil prices.
The objective of this study is to examine the impact of foreign exchange rate volatility on economic growth in nigeria between 1981 and 2008. People have not been investing due to exchange rate volatility. This study therefore examine exchange rate fluctuation during the different exchange rate regime, its impact on economic growth rate to determine which of the exchange rate regime significantly influence. Pdf exchange rate policy and nigerias economic growth. Effect of foreign exchange rate fluctuations on nigerian economy. Nigerian exchange was phenomenon as the naira exchange rate to the dollar rose astronomically from. Economic monitoring toring nigerian economic growth. Exchange rate has a negative impact on the gdp because as it increases, the economic growth is negatively affected, while inflation rate exerts a positive impact on gdp, indicating that firms are more willing. Nzotta 2004 defines exchange rates as the price of one currency in terms of another. This research work is centred on the impact of exchange rate fluctuation on the nigeria s economic growth with special emphasis on purchasing power of the average nigeria and the level of international trade transaction. The impact of exchange rate fluctuations on private domestic investment performance in nigeria doi. Exchange rate fluctuation and the nigeria economic growth. Currency fluctuations are a natural outcome of the floating exchange rate system.
The result revealed that the nominal exchange rate was significant and had an impact on economic growth in nigeria, a good exchange rate system is needed to be maintained. Following the findings, it was recommended that the government should adopt a nominal exchange rate policy, government should ensure a good exchange rate system. Exchange rate instability is menacing economic growth in nigeria. The rate of inflation in a country can have a major impact on the value of the countrys currency and the rates of foreign exchange it has with the currencies of other nations. In the globalization period exchange rate is the crucial factor affecting on economic growth of every country. Effect of exchange rate volatility on nigeria economy.
Fluctuations, whether positive or negative, increases risk and discourages trade hence is not desirable for the economy. Pdf the effect of exchange rates on economic growth. This research study examined the impact of exchange rate on economic growth from 1986 to 20. It is in the light of the foregoing that this study seeks to evaluate the effects of exchange rate fluctuations on the nigeria manufacturing sector output from the year 1986 to 2014. Research method there are a large number of macroeconomic variables which affect macro economic performance beside exchange rate. School of international economics and trade, dongbei university of finance and economics, 217 jianshan street, shahekou district, dalian, china. A granger causality impact assessment find, read and cite all the research. Mori, asid, lily, mulok, and loganathan 2012 examined the impact of exchange rates on economic growth. In a similar study, akpan 2008 investigated foreign exchange. Pdf effect of foreign exchange rate fluctuations on. The study employed the ordinary least square ols multiple regression technique for the analysis.
Effects of exchange rate movements and economic growth in nigeria. This study examined the impact of inflation on economic growth in tanzania by showing the degree of responsiveness of change in gdp due to. The impact of exchange rate fluctuation on the nigerian economic growth. Exchange rate fluctuation and sustainable economic growth.
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