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The Impact Of Exchange Rate On The Nigeria Economic Growth
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1.2 STATEMENT OF THE PROBLEM
The exchange rate of the naira was
relatively stable between 1973 and 1979 during the oil boom era
(regulating require). This was also the situation prior to 1990 when
agricultural products accounted for more than 70% of the nations gross
domestic products (GDP) (Ewa, 2011). However, as a result of the
development in the petroleum oil sector in 1970’s, the share of
agriculture in total exports declined significantly while that of oil
increased. However, from 1981. the world oil market started to
deteriorate and with its economic crises emerged in Nigeria because of
the country’s dependence on oil sales for her export earnings. To
underline the importance of oil export to Nigerian economy, the gross
national product (GNP) fell from $76 billion in 1930 to $40 billion in
1996, a number of policy measures to revive and strengthen the economy.
The real rate of economic growth became negative as a result of the
adoption of structural adjustment programme (SAP).
(Hinkle, 1999)
stated that “while some economist dispute the ability to change in the
real exchange rate to improve the trade balance of developing countries
because of elasticity of their low export, others believe that
structural policies could however, change the long –term trends in the
trade and prospects for exported growth. Instabilities of the foreign
exchange rate is also a problem to the economy.
1.3 OBJECTIVES OF THE STUDY
The
objectives of the study is to show the impact of exchange rate on gross
domestic product and hence how this affect the growth of the country.
The sub-objectives are
1. To determine the impact of exchange rate fluctuations on Nigeria’s growth
2. To ascertain the effect of exchange rate on Nigerian export.
1.4 RESEARCH QUESTIONS
1. To what extent does exchange rate fluctuation impacts on the volume of Nigeria’s economic growth?
2. What is the effect of exchange rate on Nigeria’s export?
1.5 RESEARCH HYPOTHESIS
Base on the objectives of the study, the following hypothesis were formulated.
1. HO: exchange rate has no significant impact on Nigeria’s economic growth
2. HO: exchange rate has no significant impact on export in Nigeria.
1.6 SCOPE OF THE STUDY
This
research work is designed to cover the period 1980-2010, a period of
thirty one years. The general overview of the profile of Nigerians
exchange rate over the years shall be discussed. The scope consist of
the regulatory and deregulatory exchange rate period that is the fixed
exchange rate and the floating exchange rate period. The study is based
on core macro-economic performance of Nigeria between 1980-2010.
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ABSRACT - [ Total Page(s): 1 ]Exchange rate is the price of one currency in terms of another currency.Exchange rate s This exchange rate is also used to determine the level of output growth of the country. Over the years, Nigeria has adopted various exchange rate regime ranging research work is centered on the impact of exchange rate on the Nigeria economic growth with special emphasis on the purchasing power of the average Nigeria and the level of international trade transaction. To do this, the classical linear regression ... Continue reading---
