Exchange Rate Volatility And Economic Growth In Nigeria
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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.
Economic Growth , Exchange Rate Volatility
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.