OIL PRICE AND EXCHAGE RATE VOLATILITY IN NIGERIA
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
Nigeria is a mono-product economy, where the main export commodity is crude oil, changes in oil prices has implications for the Nigerian economy and, in particular, exchange rate movements. The latter is mostly important due to the double dilemma of being an oil exporting and oil-importing country, a situation that emerged in the last decade. The study examined the effects of oil price, external reserves and interest rate on exchange rate volatility in Nigeria using yearly data from the year 1970 to 2011. The theoretical framework of this study is based on Generalized Autoregressive Conditional Heteroskedasity modeled by Tim Bolerslev (1986) and Exponential General Autoregressive Conditional heteroskedastic modeled by Daniel Nelson (1991). The models are used to estimate the relationship between oil price changes and exchange rate. Relevant descriptive and econometric analyses were employed. The econometric tests used include the unit root tests, Johansen co-integration technique and the Vector Error Correction Model (VECM) when the unit root tests were carried out; all the variables were stationary at first difference. The long run relationship among the variables was determined using the Johansen Co-integration technique while the vector correction mechanism was used to examine the speed of adjustment of the variables from the short run dynamics to the long run. It was observed that a proportionate change in oil price leads to a more than proportionate change in exchange rate volatility in Nigeria by 2.8%. I therefore recommend that the Nigeria government should diversify from the Oil sector to other sectors of the economy so that Crude oil will no longer be the mainstay of the economy and frequent changes in crude oil price will not influence exchange rate volatility significantly in Nigeria.
Related Project Materials
ANALYSIS EFFECT OF MORTALITY DEATH RATE ON WOMEN AGE GROUP
ABSTRACT
This study was carried out to examine the effect of mortality death rates on women age g...
AN INVESTIGATION INTO THE INFORMATION AVENUE AND THE USE OF TRADITIONAL MEDICINE AMONG FARMERS
ABSTRACT
The study examined the the information avenue and the use of traditional medicine among farmers in Edo and Delt...
AN INVESTIGATION INTO QUALITY OF AGGREGATE IN ROAD CONSTRUCTION
ABSTRACT
The current extensive use of low quality aggregate in Nigerian road for engineering applications is of concern...
THE EFFECT OF CENTRAL SECURITIES CLEARING SYSTEM(CSCS) ON THE NIGERIA CAPITAL MARKET
Abstract
The study is about the impact of Central Securities Clearing System (CSCS) operations on the development of Nigerian capital mar...
THE INFLUENCE OF EARLY CHILDHOOD EDUCATION (ECE) PROGRAMS ON THE DEVELOPMENT OF EMOTIONAL REGULATION SKILLS AMONG YOUNG CHILDREN
Abstract: This study investigates the influence of early childhood education (ECE) programs on the developme...
MYCOTOXINS AVAILABLE IN FOODSTUFFS VENDED IN AWKA
ABSTRACT
The study examine mycrotoxins available in food stuff vended in Awka. The findings showed that the variou...
ASSESSMENT OF PROBLEMS AND ACHIEVEMENT IN PRIMARY HEALTH CARE ACTIVITIES IN BAUCHI METROPOLIS PRIMARY HEALTH CARE SETTING
BACKGROUND OF T
ABSTRACT Incidence of surgical site nosocomial infections and antibiotics susceptibility profiles of bacterial isolates in Ahmadu Bello U...
BACKGROUND OF THE STUDY Progression is the major objective of an organisation. An organisation need to progress financia...
EXCERPT FROM THE STUDY There is no doubt given the findings of this study, that corporate social responsibility performance plays signifi...
INCIDENCE OF SURGICAL SITE NOSOCOMIAL INFECTIONS IN FEMALE AND MALE SURGICAL WARDS OF AHMADU BELLO UNIVERSITY TEACHING HOSPITAL, ZARIA, NIGERIA
CRITICAL ANALYSIS OF TEAMWORK AS A TOOL FOR ORGANIZATIONAL DEVELOPMENT BY OFFICE MANAGER
ANALYSIS OF SOCIAL RESPONSIBILITY AND ITS EFFECTS ON BUSINESS ORGANIZATION
