IMPACT OF EXCHANGE RATE FLUCTUATIONS ON FOREIGN TRADE IN NIGERIA (1993 - 2023)
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: Available
- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
This study investigates the Impact of exchange rate fluctuations on foreign trade in Nigeria. The research is carried under the assumption that exchange rate fluctuations are deemed to impact on the volume of export and import trading activities. The study made use of Secondary data from 1993 to 2023. Econometric tools were used to ascertain relationships. The paper established a mixed result between the variables under review. While some of the tests did not provide adequate and predictive information on the relationship between exports, imports and real effective exchange rate, others did. The VAR model estimates indicate an inverse relationship between Export, Import and REER in current periods. A unit increase in export and import in a particular year leads to about 0.9% and 0.4% decrease in REER respectively. Variance decomposition analysis suggests that the shocks partially explain fluctuations in REER, as well as exports and imports. The Impulse response analysis indicates a negative association between export and real effective exchange rate while it was majorly positive for imports throughout the ten periods. The causal effect reveals that import causes exports but that exports do not granger cause imports. The ARCH modelling approach suggests the existence of a first-order Arch effect and a significant GARCH term. Though the Coefficient of GARCH in a mean term is negative; it produced a singular covariance which by itself is not unique. Results show evidence of fluctuation of REER clustering on import and export trading activities in Nigeria. This could have serious implications for growth in Nigeria, as a reduction in the growth of exports could reduce the foreign exchange earnings available for the financing of developmental projects. At the same time, a decline in imports could affect domestic production and consumption. It could also impinge negatively on the balance of payment positions for Nigeria. In line with these observations, monetary and fiscal interventions are required to mitigate the adverse effects since financial shocks often exacerbate exchange rate fluctuations.
Related Project Materials
THE INFLUENCE OF DIGITAL MARKETING ON SALES STRATEGIES
THE INFLUENCE OF DIGITAL MARKETING ON SALES STRATEGIES
This study explores the influen...
THE EFFECT OF WATER EXTRACT OF COLA NITIDA POD ON LIPOPROTEIN CONCENTRATIONS OF ALBINO WISTAR RATS
ABSTRACT
Cola nitida has been in use in the eastern parts of Nigeria for the management of certain ailments and as an aphrodisiac in the...
THE ROLE OF BROADCAST MEDIA IN MOBILIZING WOMEN FOR POLITICAL PARTICIPATION
ABSTRACT
The low rate of female participation in politics compared to that of their male counte...
ASSESSING THE IMPACT OF POVERTY ON MATERNAL AND INFANT MORTALITY
Background Of The Study
Maternal and child mortality are not new concepts in the social and medical sci...
GENDER AND POLITICAL PARTICIPATION IN RIVERS STATE, THE FOURTH REPUBLIC EXPERIENCE(A CASE STUDY OF THE 2011 GENERAL ELECTIONS
Background of the Study
The principles of freedom, fairness, and equality in treatment of all peo...
THE ACTIVITIES OF THE NATIONAL ASSOCIATION OF CHAMBERS OF COMMERCE INDUSTRIES MINES AND AGRICULTURE (NACCIMA), IN THE DEVELOPMENT OF SMALL AND MEDIUM SCALE INDUSTRIES IN NIGERIA
Abstract
The issue of small and medium scale industries dates back to when people started producing mor...
AVAILABILITY AND UTILIZATION OF INSTRUCTIONAL MATERIALS FOR LEARNING OF COMPUTER STUDIES
ABSTRACT
This study sought to investigate availability and utilization of instructional materials for learning of comput...
AN APPRAISAL OF THE LEGAL AND INSTITUTIONAL FRAMEWORK FOR THE PROHIBITION OF TRAFFIC IN PERSONS IN NIGERIA
ABSTRACT
The battle against human trafficking in Nigeria is enormous and a number of measures have been employed in ensuring that the pro...
THE IMPACT OF RECRUITMENT PROCESS OUTSOURCING ON ORGANIZATIONAL EFFICIENCY
Abstract THE IMPACT OF RECRUITMENT PROCESS OUTSOURCING ON ORGANIZATIONAL EFFICIENCY
The objective of this study is to examine the i...
THE IMPACT OF INDUSTRIALIZATION ON RURAL DEVELOPMENT
ABSTRACT
The study is a critical examination of the impact of industrialization on rural development....
