AN ANALYSIS OF THE RELATIONSHIP BETWEEN REAL EXCHANGE RATE AND DOMESTIC CONSUMPTION IN NIGERIA (1981-2016)
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
This study analyses the real exchange rate-domestic consumption relationship in Nigeria using the Smooth Transition Autoregressive (STAR) model from 1981 to 2016. Findings shows that domestic consumption determines the regime shift in real exchange rate suggesting a nonlinear linkage ofreal exchange rate and domestic consumption with clearly distinct regimes. Exchange rate is shown to have significant linear effect from previous exchange rate. On the other hand, current foreign consumption is positive but has no significant impact on the exchange rate in the linear part of the model. In the nonlinear part of the model, we found evidence of a significant negative relationship between real exchange rate and domestic consumption, thus supporting the proposition by standard International Real Business Cycle (IRBC) Model. In the face of the wide disparity in literature trying to establish the prediction of IRBC model, we found evidence of bi-directional nonlinear granger causality between real exchange rate and domestic consumption. The study concludes that the relationship between real exchange rate and domestic consumption is indeed nonlinear and that fiscal and monetary authorities should develop policies that will help strengthen domestic production to further reduce import component in domestic consumption.
Related Project Materials
COMPENSATION MANAGEMENT AS A TOOL FOR IMPROVING ORGANISATIONAL PERFORMANCE IN THE PUBLIC SECTOR
BACKGROUND TO THE STUDY
The compensation of employees at all level has become one of the major function...
THE IMPACT OF HUMAN RESOURCES MANAGEMENT ON PRODUCTIVITY OF AN ORGANIZATION
ABSTRACT
This study examines The Impact of Human Resources Management on Productivity of an Organization (A case study N...
INFLUENCE OF FAMILY PLANNING RADIO PROGRAMME ON YOUNG COUPLES
ABSTRACT
Radio is one of the means to get information across the length and breadth of the society because of its flexib...
DEVELOPMENT OF AN ETHNOSCIENCE DATABASE AND ITS IMPACTS ON STUDENTS LEARNING OUTCOMES IN BASIC SCIENCE IN SOUTHWESTERN NIGERIA
Background to the Stusy
Science serves as a veritable tool for the sustainable growth and development of a nation. Indeed the strength of...
THE ROLE OF THE PRESS IN NATION BUILDING
ABSTRACT
This study examined the role of the press in national building. The study was limited to Government owned media houses in Uyo...
AN EVALUATION OF THE NTA INTEGRATION PROGRAM
Background of the study
The media, particularly television, plays a critical role in promoting national...
IMPACT OF SOCIAL MEDIA ON CONSTRUCTION SMEs BUSINESSES IN ABUJA
ABSTRACT
Since the advent of social media in the early 2000s, its influence on the day to day life of people has impacted the way they co...
THE IMPACT OF ARTIFICIAL INTELLIGENCE ON VOCATIONAL JOB ROLES AND SKILLS
ABSTRACT: This research explores the impact of artificial intelligence (AI) on vocational j...
DEVELOPMENT OF AN IMPROVED APPLICATION SPECIFIC TUNELLING PROTOCOL SELECTION SCHEME FOR SITE TO SITE VIRTUAL PRIVATE NETWORKS
ABSTRACT
This study presents the development of an improved application specific tunnelling protocol selection scheme (iASTPSS) for site-...
THE IMPACT OF CHRISTIAN RELIGIOUS STUDIES ON THE MORALS OF SECONDARY SCHOOL STUDENTS IN NIGERIA
Abstract
This research discusses the impact of Christian religious studies on the morals of secondary school students in...
