Currency Devaluation and Importation of Rice in Nigeria
Journal Title: Journal of Economics, Management and Trade - Year 2017, Vol 18, Issue 1
Abstract
Preference for consumption of imported rice by many Nigerians in the face of unstable exchange rate and currency devaluation, informed the determination of the trend of rice importation and the long run equilibrium relationship between naira devaluation and rice importation in Nigeria. Using time series data between 1980 and 2015, the study employed descriptive; and Co-integration and Vector Error Correction Techniques as analytical tools. The descriptive results showed a decreasing, steady and increasing trend in the value of rice importation into the country; while the results of co-integration and vector error correction confirmed a positive long-run equilibrium relationship between naira devaluation and rice importation, with a significant speed of adjustment and convergence to equilibrium in the long run. The study therefore concluded that naira devaluation with fluctuating exchange rate vis-à-vis other currencies positively determined rice importation during the period under review. That is, despite naira devaluation the quantity of rice imported into the country especially by the rich people who can afford it had tremendously increased.
Authors and Affiliations
O. O. Ehinmowo, A. I. Fatuase, A. P. Akinbolasere
Keywords
Related Articles
- EP ID EP319811
- DOI 10.9734/JEMT/2017/30392
- Views 111
- Downloads 0
Risk, Performance and Executive Compensation: A Simultaneous Approach on China Listed Firms
Corporatization and listing of State Owned Enterprises (SOEs) and the adoption of profit objectives is meant to accelerate growth and encourage innovation and investment. This study assess the relation between executive...
Methodological Principles of Formation of Tariffs for Railway
Aim: Aim of this paper is to research the approaches that affect the efficiency of government regulation of tariff for railway transportation industry in both sectors in scientific and methodological way. Study Design:...
An Empirical Study of Stress and Stress Management among Faculties of Private Technical Institutions in Meerut District
Stress is often described as a silent killer because the effect of stress is not readily apparent and it is observed that high level of stress is found at workplace. Job is part and parcel of life. Stresses on the job af...
Modelling the Impact of Oil Price Volatility on Investment Decision Making in Marginal Fields’ Development in Nigeria
This study investigated the impact of oil price volatility on investment decision making in Marginal fields’ development in Nigeria. The study also investigated the relationship between oil price volatility and marginal...
Trends and Prospects for the Convergence of Public-private Partnerships` Financial Potential in Ukrainian Regions
Aims: In Ukraine, the development of partnership between the state and business is at an early stage, especially has not explored the need and PPPs` financial potential for Ukrainian regional development. The possibility...