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. But benefits of foreign direct investment to countries could differ, depending on the economic environment and the availability of resources. Quantitative analysis of the impact of exchange rate policies on nigerias economic growth. D department of economics, ambrose alli university, ekpoma, nigeria tel. This page provides nigeria gdp annual growth rate actual values, historical data, forecast, chart, statistics, economic. Determinants of inflation, exchange rate, and output in nigeria. Economic indicators for nigeria including actual values, historical data charts, an economic calendar, timeseries statistics, business news, long term forecasts and. The study employed simultaneous equations model sem and generalised methods. Effects of exchange rate movements on economic growth in nigeria. Though nigeria real gdp growth fluctuated substantially in recent years, it tended to decrease through 1999 2018 period ending at 1. The impact of exchange rate regimes on economic growth with.
The impact of exchange rate fluctuation on the nigerian. More specifically, the study sought to assess government expenditure and economic growth. Broad money growth decreased to 2 percent in 2017, compared to 18 percent in 2016. Nigeria gross domestic product gdp growth rate 2024. Exchange rate volatility and export trade in nigeria. 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. Exchange rate fluctuations, delivery of foreign exchange. The free floating exchange rate system where exchange rate is. Pdf exchange rate and the economic growth in nigeria. Effects of exchange rate movements on economic growth in. Pdf real exchange rate volatility, economic growth and. How falling oil prices caused foreign exchange rate. The impact of exchange rate regimes on economic growth.
The unemployment rate is still high, economic growth rate is low. Exchange rate, economic growth, panel data analysis. Effects of exchange rate movements on economic growth in nigeria pdf logo. 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. 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.
The real exchange rate and economic growth abstract i show that undervaluation of the currency a high real exchange rate stimulates economic growth. Nigeria gdp annual growth rate 19822019 data 20202022. Effect of exchange rate fluctuations on the nigeria economy. This research study examined the impact of exchange rate on economic growth from 1986 to 20. We apply the ols approach to estimate the regression equation and present the model that analyzes the impacts of exchange rate on economic growth. Effect of life insurance businesss income on the economic growth of nigeria.
This article is brought to you for free and open access by the ames library. The effect of real exchange rate on economic growth in. Consequently, non conflicting sectoral policies are conceived within the ambit of the overall policy framework such that each sectoral policy reinforces each other. Impact of exchange rate on the nigeria economic growth free. Effect of exchange rate fluctuation on firm profitability. 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. Impact of exchange rate fluctuation on nige rias economic growth 19812015, full project materials. Pdf the impact of exchange rate regimes on economic growth. 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. It covers the various exchange rate used in nigeria since 1990 to 2008. Focuseconomics consensus forecast panelists expect the naira to trade at 291 per usd at the end of 2016. The study examined the impact of government expenditure on economic growth in nigeria, using the time frame 20002015 5 years. Pdf since ancient times, humans have exchanged goods.
Pdf on jan 1, 2017, felicia akujinma anyanwu and others published. The purpose of this paper is to analyse empirically the effects of exchange rate on economic growth in the fyrom. It is the required amount of units of a currency that can buy another amount of units of another currency. Impact of exchange rate on the nigeria economic growth project material. 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. Effect of exchange rate fluctuations on manufacturing.
Hypothesis 2 h0 that floating exchange rate regime does not contribute to the economic growth of nigeria. Pdf the effect of exchange rates on economic growth. 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. The study employed simultaneous equations model sem and generalised methods of moments gmm techniques for data analysis.
Despite the liberalization of the exchange rate in. The gross domestic product growth is a long term rise in the capacity to supply increasingly diverse economic goods o its population. 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. Pdf on jan 1, 2017, felicia akujinma anyanwu and others published exchange rate policy and nigeria s economic growth. Impact of foreign direct investment on unemployment rate. Exchange rate depreciation and nigeria economic performance after structural adjustment programmes saps ismaila, mohammed ph. Exchange rate vs usd 5 years of economic forecasts for more than 30 economic indicators. To evaluate this hypothesis, annual time series data on manufacturing gross domestic product a proxy for economic growth, exchange rate, private foreign investment and. H1 that fixed exchange rate regime contributes to the economic growth of nigeria. 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. The roa ratio may thus be more useful when compared to the risk free rate of return.
The main type of data used in this study is secondary. This working paper should not be reported as representing the views of the european central bank ecb. The convertible investors and exporters window, to which the parallel market rate remains aligned, traded at 20 percent premium over the official exchange rate. Headline inflation has fallen, reaching its lowest level since january 2016, helped by lower food price inflation. 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. Nigerian economy is in a critical condition that needs improvement. Chapter two of this impact of exchange rate on the nigeria economic growth research work is available. A granger causality impact assessment find, read and cite all the research. It is a veritable instrument of economic management and therefore an important macroeconomic indicator. All in all, the findings suggest that fi xed exchange rates constrai n the performance of. 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. H1 that fixed exchange rate regime contributed to the economic growth of nigeria.
Measuring the economic growth of a country aims to assess whether the growth can cope with the growing demands of the society. Evidence from nigeria, authorokwuchukwu odili, year2015. Quantitative analysis of the impact of exchange rate policies. 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.
For 2017, the panel foresees the ngn trading at 306 per usd. Impact of foreign direct investment on unemployment rate in. In 2018, nigeria s real gross domestic product increased by around 1. 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. Exchange rate fluctuation on nigeria economic growth mensch mind. 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. Nigeria biannual economic update is intended for a wide audience, including policymakers, business. A country foreign exchange policy is derived from the perceives overall economic objectives to achieve and the expected direction of growth cbn, 2003. Quantitative analysis of the impact of exchange rate. Please, sit back and study the below research material carefully.
Effect of exchange rate fluctuations on manufacturing sector. To evaluate this hypothesis, annual time series data on manufacturing gross domestic product a proxy for economic growth. The effect of exchange rate fluctuations on economic growth varies in different countries. From 1986 being the year the monetary authority shifted from fixed exchange rate regime to flexible exchange rate regime to 20. 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. The paper seeks to quantitatively assess the impact of exchange rate volatility on non oil export flows in nigeria. The real exchange rate and economic growth brookings institution. Impact of interest rate on economic growth in nigeria. Annual percentage growth rate of gdp at market prices based on constant local currency. Summary of findings, conclusion, policy recommendation, bibliography and journals. New theories emphasize the high correlation between economic growth and innovation. Pdf the impact of exchange rate fluctuation on the. 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. This study focused on the nexus between exchange rates and economic growth in nigeria over the period of 1978 to 2014.
Is the effect of interest rate of economic growth rate. 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. Pdf exchange rate policy and nigerias economic growth. Exchange rate fluctuation on nigeria economic growth. Nov 20, 2019 the statistic shows the growth in real gdp in nigeria from 2014 to 2018, with projections up until 2024. Impact of exchange rate regimes on economic growth digital. Theoretically, volatilitytrade link is ambiguous, although a strand of studies reported inverse link between export flow and volatility. Atan2 this study investigates the effect of exchange rate movements on real output growth in nigeria. First, poverty cannot be reduced in isolation from economic growthan observation that has. Gdp is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any. 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. Even when a freefloating exchange rate system was adopted, the monetary au. Pdf the impact of exchange rate fluctuation on the nigerian.
The central bank of nigeria cbn tightened monetary policy significantly in 2017 and maintained exchange rate stability. 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. 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. 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. It analyzed the data for nigeria using ordinary least square ols method and. In 2018, nigerias real gross domestic product increased by. The statistic shows the growth in real gdp in nigeria from 2014 to 2018, with projections up until 2024.
This study is designed to examine the impact of interest rate on nigeria. 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. Impact of exchange rate on the nigeria economic growth. Waec gce past questions and answers free download pdf all subjects these are. Impact of exchange rate fluctuation on nigerias economic growth 19812015, full project materials. Effects of exchange rate fluctuations on economic growth. Consequently, non conflicting sectoral policies are conceived within the ambit of the overall policy framework.
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