Analysis of Inflation and Its Effect on Economic Growth in Nigeria
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 1
Abstract
This paper examined the effect of inflation on economic growth in Nigeria utilizing annualized data covering the period 1986 – 2015, which were obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin of various issues. This study employed ex-post research design because the variables were based on events that had already taken place, which the researcher could neither control nor manipulate. Some preliminary tests were performed to ensure data stationarity, and also ascertain how well the series were distributed. While Augmented Dickey-Fuller (ADF) was adopted for the former, descriptive statistics explained the latter. Ordinary Least Square (OLS) technique was used to estimate the variables. Real Gross Domestic Product (RGDP) formed the dependent variable, Inflation Rate (INFR), Interest Rate (Interest Rate) and Exchange Rate (EXCHR) made up the independent variables. Statistical outcomes were interpreted based on a 5 percent level of significance. The regression results indicated that INFR had a positive and non-significant effect on economic growth (measured by RGDP) in Nigeria for the period studied. The study recommended that government should adopt tight monetary policy measures to stabilize tide of inflationary pressures on our economy. It also recommended that political leaders should minimize unjustified public spending and promote fiscal prudence.
Authors and Affiliations
Anidiobu G. A. , Okolie P. I. P. , Oleka D. C. Ph. D
Keywords
Related Articles
- EP ID EP414515
- DOI 10.9790/5933-0901042836.
- Views 323
- Downloads 0
Evaluation Of Effectiveness And Contribution Of Household Tax Receiptions For Regional Government Revenue
This study aims to determine the effectiveness level of boarding house tax revenue and the contribution level of boarding house tax revenue on local revenue of Kendari city during period year 2013- 2015. In this research...
The Economic Reality of Iron Ore Production amid Diversification: A Case of Niomco (National Iron Ore Mining Company)
The study projects on average, the profitability of Nigeria’s iron ore company, NIOMCO (National Iron Ore Mining Company) in Kogi State, amid her current economic status. In attempt to project the profitability surroundi...
African Diaspora and Structural Economic Transformation of Africa: Lessons from Asia
Income levels tend to converge across different regions through the diffusion of technology and productivity. Asian economies are closing income gap between them and high income countries, African economies are not. The...
Analysis to the Effect of Return on Equity, Interest Rate, Exchange Rate, and Inflation toward Stock Price on Property and Real Estate Industries Listed In Indonesian Stock Exchange (Idx) Period of 2009-2015
This research aims to know simultaneously and partially about the effect of Return on Equity, interest rate, exchange rate, and inflation variable toward stock price on property and real estate industries listed in Indon...
Effect of Leadership on Implementation of Strategic Plans in Savings and Credit Co-Operative Societies in Kenya: A Case Of Mwalimu Sacco In Nairobicounty
Strategic plans are of pertinent concern in contemporary management. However, it’s successful implementation remains of greater concern and is an essential challenge for most organizations. It has been noted that there i...