OIL PRICE INSTABILITY AND INDUSTRIAL SECTOR OUTPUT IN NIGERIA
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ABSTRACT
This paper analyses oil prics stability and industrial sector output in Nigeria. Results show that the impact of oil price on industrial sector output is asymmetric in nature; with the impact of oil price decrease significantly greater than oil price increase. Also, from the variance decompositions, oil price changes play a significant role in determining the variance decompositions of output and prices. The implication is that any policy that is aimed at moving the economy forward must focus on price stability in which changes in oil price play a significant role.
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