An Investigation of the Impact of Exchange Rate Policy on Manufacturing Sector Output: Evidence from Nigeria
Journal Title: IOSR Journal of Humanities and Social Science - Year 2018, Vol 23, Issue 8
Abstract
The study examined the impact of exchange rate policy on manufacturing output, using evidence from Nigeria for the period 1981-2016. Johansen cointegration test and Vector Error Correction (VECM) model were applied in the analysis. Time series data obtained from the Central Bank of Nigeria (CBN) statistical bulletin on manufacturing output (MOP), exchange rate (EXR), manufacturing sector capacity utilization (MCU) and import (IMP) were engaged in the investigation. After the necessary integration, co-integration and correcting the error in the estimated equation, a causality analysis via Granger causality test among the relevant variables was undertaken in order to verity the relevance of the exchange rate-led hypothesis to manufacturing sector output growth in Nigeria. The results revealed that growth increasing the quantity of naira exchanged for the dollar caused a fall in the manufacturing output in Nigeria. However, this impact was found to be insignificant. Thus, exchange rate volatility does have significant impact on the growth of manufacturing output in Nigeria. Hence, since exchange rate volatility was indicated to impact on manufacturing output in Nigeria significantly, the study recommends that the policy makers should vigorously pursue macroeconomic policies that will keep the exchange rate of the naira at a tolerably stable low rate. This would therefore, help in making Nigerian market more attractive to foreign investors; thus, improve the output growth of the manufacturing sector of the economy.
Authors and Affiliations
Celina Udude Chinyere Ph. D, Eze Onyebuchi Michael Michael, Atuma Emeka Ph. D
Keywords
Related Articles
- EP ID EP419661
- DOI 10.9790/0837-2308038190.
- Views 162
- Downloads 0
The Role of Social Media in Community Development in Nigeria: The Owe Unity Forum (Oaf) Model.
The social media which is a relatively new phenomenon in Nigeria, is basically for communication and maintenance of relationships. But this paper tries to explore its potentialities in mobilizing community members for co...
Impact of Parenting Styles on Social Skills of Adolescent Children in Urban Areas of Ludhiana, India
Background: Parenting style has an immense impact on the mental health and social development of children. Aims: The present study aims at determining the effects of different modes of parenting styles on the dimensions...
Teacher Behavior in Obligation of Continuing Profession Development
The Sustainable Capacity Development Program is an effort by the government to improve teacher quality and professionalism. For some teachers that CLA is only for promotion and promotion requirements so that once the goa...
Exploring Foreign Language Anxiety and its Relationship with Grade Nine Students’ English Language Achievement
This study was designed to explore Foreign Language Anxiety and its Relationship with Grade Nine Students’ English Language Achievement at HawassaTabor,Yirgalem, and HawassaLangano Preparatory and Secondary Schools. The...
Discipline, Power And Resistance: A Foucauldian Analysis Of Lalithambikaantharjanam’ snovel Agnisakshi
The objective of this paper is to explore and analyse the novel Agnisakshi written by LalithambikaAntharjanam in the light of Foucauldian concept of discipline, power and resistance. When we apply these theories in the c...