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 254
- Downloads 0
Does the Price of Life Insurance Influence the Uptake of Life Insurance in Kenya?
Life insurance plays an important role in individuals and families financing by providing a hedge against loss of income following the loss of the wage earner. However, data from Association of Kenya Insurers (AKI), repo...
Dynamics of the Term Structure of Interest Rates: A Critical Literature Review
Research on thedeterminants of the term structure of interest rates continues to be an area of substantial interest from the public and private sectors largely due to the economic impact of the term structure on both loc...
Influence of Research and Development (R&D) Cost on Profitability: A Study of Indian Pharmaceutical Sector
The Indian Pharmaceutical Industry (Ipi) Is The World's Second-Largest Industry By Volume And Is Likely To Lead The Manufacturing Sector Of India. It Meets Around 70% Of The Domestic Demand For Bulk Drugs, Drug Intermedi...
Social Economic Condition and Social Capital In Relation To Income: Case Study of Rural Empowerment National Program Beneficiaries in Indonesia
Economic growth and increasing per capita income as the development’s success indicator contain several weaknesses. The purpose of this research is to evaluate the Rural Community Empowerment National Program, which is a...
The Influence of Locus of Control and Professional Commitment Toward Auditor’s Behavior in Conflict Situation
The purpose of this research is to find out the influence of locus of control and professional commitment toward auditor’s behavior in conflict situations. A sample of this research used functional staff of local governm...