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Exchange Rate Stability And Export Performance: The Case Study Of Agricultural Produce In Nigeria, (1978-2010)
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1.4 STATEMENT OF HYPOTHESIS
To test for the statistically significance or non-significance of data,
Ho represents the Null Hypothesis
H1 represents the Alternative Hypothesis
Ho = H1 there is no relationship between exchange rate stability and export performance of agriculture produce in Nigeria.
Results; If Ho > H1 then we accept the alternative hypothesis and reject the
null hypothesis that exchange rate stability does not affect the export performance of agriculture produce in Nigeria.
1.5 SIGNIFICANCE OF THE STUDY
One
of the most dramatic events in Nigeria over the past decade was the
devaluation of the Nigerian naira with the adoption of a structural
Adjustment programme (SAP) in 1986. significantly, this depreciation
resulted in changes in the structure and volume in Nigeria‟s
agricultural export as empirically determined by many research (Oyejide,
1986; Ihimodu 1995; Osuntogun et al 1993; World Bank, 1994). The
depreciation also increased the prices of agricultural exports and
studies have shown a marked increased in volume of agricultural exports
over the years. Appreciation of a country‟s real exchange rate caused by
the sharp rise in export of a booming resources sector like oil draws
capital and labour away from a country‟s manufacturing and agricultural
sectors, which can lead to a decline in export of agricultural goods and
inflate the price of non-tradable goods
(Corden 1982) and Corden and
Nearly (1984) however, the volatility, frequency and instability of the
exchange rate movements since the beginning of the floating exchange
rate raise a concern about the impact of such movements on agricultural
trade flows.
1.6 LIMITATIONS OF THE STUDY
The concept of exchange
rate stability has been generally acknowledged to have a strong
relationship with economic development in Nigeria.
ï‚· The scope of
this work will be limited to the rate of exchange in the geographical
area Nigeria using its changes in the world prices or fluctuation in
exchange rate (1978-2010) that is thirty (32) years.
ï‚· The study
takes the United States Dollar ($) as widely most used currency in
international trade by pitching it against the Nigeria naira (N).
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ABSRACT - [ Total Page(s): 1 ]Exchange rate is the price of one currency in terms of another currency. Exchange rate stability has to do with government actions in order to stabilize exchange rate so as to increase export in Nigeria especially export of primary products (agricultural produce) over the years, Nigeria has adopted various exchange rate regimes ranging from fixed exchange regime to floating exchange regime. The main purpose of this work is to determine to what extend does the volatility and risks of exchange rat ... Continue reading---
