In 2018, nigeria s real gross domestic product increased by around 1. Chapter two of this impact of exchange rate on the nigeria economic growth research work is available. Effect of exchange rate fluctuation on firm profitability. Headline inflation has fallen, reaching its lowest level since january 2016, helped by lower food price inflation. Pdf on jan 1, 2017, felicia akujinma anyanwu and others published exchange rate policy and nigeria s economic growth. To evaluate this hypothesis, annual time series data on manufacturing gross domestic product a proxy for economic growth, exchange rate, private foreign investment and.
The effect of exchange rate fluctuations on economic growth varies in different countries. Exchange rate vs usd 5 years of economic forecasts for more than 30 economic indicators. Specifically, it examines the extent to which real exchange rate has on the growth rates of the country reflecting real gdp, inflation rate and interest. For 2017, the panel foresees the ngn trading at 306 per usd. Pdf on jan 1, 2017, felicia akujinma anyanwu and others published. A granger causality impact assessment find, read and cite all the research. The paper seeks to quantitatively assess the impact of exchange rate volatility on non oil export flows in nigeria. To evaluate this hypothesis, annual time series data on manufacturing gross domestic product a proxy for economic growth.
Gdp is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. Impact of foreign direct investment on unemployment rate in. Exchange rate volatility and export trade in nigeria. Effect of exchange rate fluctuations on manufacturing sector. Hypothesis 2 h0 that floating exchange rate regime does not contribute to the economic growth of nigeria. New theories emphasize the high correlation between economic growth and innovation. First, poverty cannot be reduced in isolation from economic growthan observation that has.
Pdf the impact of exchange rate fluctuation on the nigerian. This working paper should not be reported as representing the views of the european central bank ecb. We apply the ols approach to estimate the regression equation and present the model that analyzes the impacts of exchange rate on economic growth. Exchange rate fluctuation on nigeria economic growth. Despite the liberalization of the exchange rate in. Nigeria gdp annual growth rate 19822019 data 20202022. In 2018, nigerias real gross domestic product increased by. Pdf exchange rate policy and nigerias economic growth. Impact of interest rate on economic growth in nigeria. Consequently, non conflicting sectoral policies are conceived within the ambit of the overall policy framework such that each sectoral policy reinforces each other. Uniprojects aim of providing impact of exchange rate on the nigeria economic growth project research material is to reduce the stress of moving from one school library to another all in the name of searching for. Effect of exchange rate fluctuations on manufacturing. Korkmaz 20 analysed the effect of exchange rate on economic growth gdp for 9 randomly selected european countries france, germany, greece, hungary, italy, spain, turkey, poland and united.
This paper investigates the effects of real exchange rate on economic growth in ghana over the period 1975 to 2015 using quarterly time series data. Nigeria biannual economic update is intended for a wide audience, including policymakers, business. This page provides nigeria gdp annual growth rate actual values, historical data, forecast, chart, statistics, economic. H1 that fixed exchange rate regime contributed to the economic growth of nigeria. The impact of exchange rate regimes on economic growth with. Exchange rate, economic growth, panel data analysis. Effects of exchange rate fluctuations on economic growth. It is the required amount of units of a currency that can buy another amount of units of another currency.
Effect of life insurance businesss income on the economic growth of nigeria. The gross domestic product growth is a long term rise in the capacity to supply increasingly diverse economic goods o its population. Evidence from nigeria, authorokwuchukwu odili, year2015. All in all, the findings suggest that fi xed exchange rates constrai n the performance of.
Effects of exchange rate movements on economic growth in nigeria. The purpose of this paper is to analyse empirically the effects of exchange rate on economic growth in the fyrom. 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. Pdf the impact of exchange rate fluctuation on the. It covers the various exchange rate used in nigeria since 1990 to 2008. The study employed simultaneous equations model sem and generalised methods. Impact of exchange rate on the nigeria economic growth project material. This project focuses on the effect of exchange rate regimes on the economic growth of nigeria as necessitated by the inflationary pressure generated by recent economic crisis through the exchange rate sensitivity. Though inflation rate is not new in the nigerian economic history, the recent rates of inflation have been a cause of great concern to many. Annual percentage growth rate of gdp at market prices based on constant local currency. Pdf since ancient times, humans have exchanged goods. Quantitative analysis of the impact of exchange rate policies on nigerias economic growth. An empirical analysis fatukasi bayo department of economics adekunle ajasin university, akungbaakoko abstract this study investigates the determinants of inflation in nigeria between 1981 and 2003.
Pdf exchange rate and the economic growth in nigeria. The real exchange rate and economic growth brookings institution. Quantitative analysis of the impact of exchange rate policies. Please, sit back and study the below research material carefully. 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.
Impact of exchange rate on the nigeria economic growth. The study examined the impact of government expenditure on economic growth in nigeria, using the time frame 20002015 5 years. The impact of exchange rate regimes on economic growth. This study is designed to examine the impact of interest rate on nigeria. From 1986 being the year the monetary authority shifted from fixed exchange rate regime to flexible exchange rate regime to 20. This article is brought to you for free and open access by the ames library.
Measuring the economic growth of a country aims to assess whether the growth can cope with the growing demands of the society. The effect of real exchange rate on economic growth in. The roa ratio may thus be more useful when compared to the risk free rate of return. In this paper, the relationship between exchange rate fluctuations,delivery of foreign exchange services and economic growth in nigeria was examined. A country foreign exchange policy is derived from the perceives overall economic objectives to achieve and the expected direction of growth cbn, 2003.
Is the effect of interest rate of economic growth rate. The paper employed fundamental analysis where the flow of non oil exports from the nigerian economy is assumed to be predicated on fundamental. The human capital index hci database provides data at the country level for each of the components of the human capital index as well as for the overall index, disaggregated by gender. It is a veritable instrument of economic management and therefore an important macroeconomic indicator. The impact of exchange rate fluctuation on the nigerian. Gdp is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any. The real exchange rate and economic growth abstract i show that undervaluation of the currency a high real exchange rate stimulates economic growth. Summary of findings, conclusion, policy recommendation, bibliography and journals. Major problems identified were that over some years now, exchange rate among the major traded currency dollar and the naira has fluctuated significantly thereby affecting the delivery of market transactions spot and forward. Impact of exchange rate on the nigeria economic growth free. Pdf the effect of exchange rates on economic growth. Oct 08, 2019 the pace of economic recovery remains slow, as depressed private consumption and investors waitandsee attitude kept growth in the first half of the year at 2 percent, a rate significantly below population growth. Though nigeria real gdp growth fluctuated substantially in recent years, it tended to decrease through 1999 2018 period ending at 1.
Effects of exchange rate movements on economic growth in nigeria pdf logo. Pdf the impact of exchange rate regimes on economic growth. This study focused on the nexus between exchange rates and economic growth in nigeria over the period of 1978 to 2014. Broad money growth decreased to 2 percent in 2017, compared to 18 percent in 2016. The unemployment rate is still high, economic growth rate is low. Even when a freefloating exchange rate system was adopted, the monetary au. Atan2 this study investigates the effect of exchange rate movements on real output growth in nigeria. Chapter five of this impact of exchange rate on the nigeria economic growth material is available, order and download full work chapter five of impact of exchange rate on the nigeria economic growth contains. Nov 20, 2019 the statistic shows the growth in real gdp in nigeria from 2014 to 2018, with projections up until 2024.
H1 that fixed exchange rate regime contributes to the economic growth of nigeria. The free floating exchange rate system where exchange rate is. Economic indicators for nigeria including actual values, historical data charts, an economic calendar, timeseries statistics, business news, long term forecasts and shortterm predictions for nigeria economy. Nigeria economic outlook top 10 themes for 2019 nigeria not among the fastest growing economies in subsaharan africa ssa by percentage growth in gdp the largest economies in subsaharan africa offer opportunities for business growth, particularly when considering an expansion into new regions country gdp growth rate africa rank world rank. Akpan and atan 2010 investigated the effect of exchange rate movements on gdp growth in nigeria for the period 1986 to 2010. The central bank of nigeria cbn tightened monetary policy significantly in 2017 and maintained exchange rate stability.
Impact of exchange rate regimes on economic growth digital. More specifically, the study sought to assess government expenditure and economic growth. The main type of data used in this study is secondary. It can be said that one of the factors determining the way exchange rate fluctuations affect economic growth is the development level of each countrys financial markets. Nigeria gross domestic product gdp growth rate 2024. Effects of exchange rate movements on economic growth in.
Determinants of inflation, exchange rate, and output in nigeria. But benefits of foreign direct investment to countries could differ, depending on the economic environment and the availability of resources. Pdf real exchange rate volatility, economic growth and. However, the study introduces a new perspective on the role of corruption in economic growth and provides quantitative estimates of the impact of corruption on the economic growth in nigeria as well as their causal relationship. This research study examined the impact of exchange rate on economic growth from 1986 to 20. Focuseconomics consensus forecast panelists expect the naira to trade at 291 per usd at the end of 2016. Using a structural vector auto regression svar model, the paper explores the relationships between the monetary policy rate interest rate, growth rate of money supply, inflation, exchange rate growth and growth rate of output. The commission on growth and development led by nobel laureate mike spence was established in april 2006 as a response to two insights. It analyzed the data for nigeria using ordinary least square ols method and. The study employed simultaneous equations model sem and generalised methods of moments gmm techniques for data analysis. The statistic shows the growth in real gdp in nigeria from 2014 to 2018, with projections up until 2024.
Economic indicators for nigeria including actual values, historical data charts, an economic calendar, timeseries statistics, business news, long term forecasts and. Waec gce past questions and answers free download pdf all subjects these are. Nigerian economy is in a critical condition that needs improvement. Impact of exchange rate fluctuation on nige rias economic growth 19812015, full project materials. Impact of foreign direct investment on unemployment rate. Effect of exchange rate fluctuations on the nigeria economy. D department of economics, ambrose alli university, ekpoma, nigeria tel. Exchange rate depreciation and nigeria economic performance after structural adjustment programmes saps ismaila, mohammed ph. Impact of exchange rate fluctuation on nigerias economic growth 19812015, full project materials. Exchange rate fluctuation on nigeria economic gro wth is an important economy metric as it reflects underlying strength and competitiveness with world economies asinya and takon, 2014. Consequently, non conflicting sectoral policies are conceived within the ambit of the overall policy framework. 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. The convertible investors and exporters window, to which the parallel market rate remains aligned, traded at 20 percent premium over the official exchange rate.
276 1338 424 1265 671 1669 332 847 1245 1342 266 1621 134 376 1663 962 808 884 45 1517 1395 779 472 1355 1148 193 473 1248 194 1486 547 1466 146 1379 239 603 1173 1064