Marshall-Lerner Condition and J Curve Phenomenon: Evidence from Nigeria
Journal Title: IOSR Journal of Humanities and Social Science - Year 2018, Vol 23, Issue 12
Abstract
This study was commissioned to investigate for the presence of Marshall-Lerner condition and Jcurve phenomenon in Nigeria’s foreign trade bustles. We implemented co-integration approach in data analysis. The results obtained indicate that in both long and short runs, Marshall Lerner condition is not verified for Nigeria and that the concept of J-curve effect is not identified either. This suggests that elasticity approach to balance of payments adjustments may not be intended for efficient and effective management of developments in trade balance of Nigeria. On the above note, the study recommends that rather than relying on exchange rate policy of devaluation (price effect) for management of deficits in the balance of trade, government may evolve comprehensive policies, inclusive of direct control such as import quota and restrictions, increased investments in import substitution industries, increased investment and diversification of export base through appropriate incentives.
Authors and Affiliations
BigBen Chukwuma Ogbonna
Keywords
Related Articles
- EP ID EP423969
- DOI 10.9790/0837-2312037784.
- Views 51
- Downloads 0
Support Systems as Antecedents for SelfEmployment amongTVET Graduate In Kenya
This paper assesses the effect of the following support systems as antecedents of self-employment among TVET graduates: The study adopted both explanatory and descriptive survey design .The study followed mixed method ap...
Effect of Family Responsibilities on Job Performance of Female Lecturers in Alex Ekwueme Federal University Ndufu-Alike Ikwo
Twenty first century womenacademics have not only changed some of their traditional roles, buthavealso acquired requisite skills for their massive involvement in the formal sector. One would expect that since women have...
The Theme Of A Mother’s Love In An Arabic And Indonesian Short Story
This Article Analyses The Comparative Of Arabic And Indonesian Short Stories. The Research Methodology Used In This Article Is A Qualitative Method With Descriptive Analytic Descriptions. This Research Is A Comparative P...
Role of Digital Technology in Teaching-Learning Process
Digital technology has brought significant changes in the progression of society. The paradigm shift in education requires the modern teacher to play a role of digital networkers to bring creativity within students as ch...
Mandela and Mugabe: Service vsPower
It is quite a commonplace truth to assert that one of the prominent characters who have impacted the social and political sphere of the African continent in the late century is the now departed South African leader, Nels...