Exchange Rate Volatility And Economic Growth In Nigeria
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Date
2012-06
Authors
Ezike, J.E.
Ajayi, L.B.
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Abstract
Consequent upon the simultaneous collapse of the Bretton wood system and
the adoption of the flexible exchange rate system in many countries, economist
and policy maker are concerned about the effect of exchange rate volatility on
the economy in general. However, theoretical, and empirical work on the subject
has produced mixed results. This study investigate the likely impact of
exchange rate volatility on Nigeria economy using Generalized Method of
Moment analysis and GARCH and ARCH modeling with annual time series
covering the period between 1980 to 2009. Interesting result was found,
exchange rate was found to have a negative and significant effect on Nigeria
economy. It was also discovered that exchange rate generated via GARCH was
volatile during the period studied. Based on this, it is instructive, therefore, that a
coordinated monetary and fiscal policy should be put. in place 10checkmate the
fluctuation of exchange rate so as to bring rapid development to Nigeria
economy.
Description
Staff Publication
Keywords
Economic Growth , Exchange Rate Volatility
Citation
Ezike,J.E. and Ajayi,L.B. (2012) Exchange Rate Volatility And Economic Growth In Nigeria . International Journal Of Management Science (IJOMAS) Vol. 2, (1&2), p. 202 - 217.