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.
ABSTRACT
Machine learning is a very useful tool to solve issues in multiple domains such as sentiment analysis, fake news detection, faci...
BACKGROUND OF THE STUDY
The issue of rising corruption in Nigeria is undeniably one of the most importa...
The vehicle maintenance and service system is an automation of the various vehic...
Abstract: THE IMPACT OF COST-VOLUME-PROFIT ANALYSIS FOR DECISION-MAKING IN NIGERIA'S TEXTILE INDUSTRY
This research explores the impa...
ABSTRACT: The Impact of Soft Skills Development on Vocational Job Performance explores the influence of non-technical skills on the workplace effec...
ABSTRACT
The focus of this research was to look at the relationship between supervision and teachers effectiveness in so...
Background of the study
Academic libraries are transforming in the new information age as a result of q...
ABSTRACT
This study was carried out to examine the the impact of the Russian invasion of Ukraine&n...
BACKGROUND OF THE STUDY
According to business dictionary, an online dictionary, “the construction industry is that...
ABSTRACT
This study was carried out in some parts of the South Wester...