-
The Impact Of Exchange Rate Fluctuation On The Nigeria Economic Growth (1980 – 2010)
CHAPTER ONE -- [Total Page(s) 2]
Page 2 of 2
-
-
-
1.3 OBJECTIVE OF THE STUDY
the objective of the study is to show the
impact of exchange rate on gross domestic product and hence how this
effect the growth and development of the Nigerian economy identifying
the impacts of the unstable exchange rate of the naira on these major
macro-economic variables would however, depend on the conditions
prevailing in the economy at a given time.
The main objectives of exchange rate policy in Nigeria are:
(1) To present the value of the domestic currency.
(2) To maintain favourable external reserve position.
(3) To ensure price stability and price stability and price levels which are consistent with those of our trading partners.
(4)
To have a realistic exchange rate which will remove the existing
distortions and distortions and disequilibrium in the external sector of
the economy.
(5) To have a stable and realistic exchange rate that is in consonance with other macro-economic fundamentals.
1.4 FORMULATION OF THE RESEARCH HYPOTHESIS
Based on the objectives of the study, the following hypothesis were formulated.
Ho: Exchange rate fluctuation has no significant impact on Nigeria economic growth and development.
Hi: Exchange rate fluctuation has a significant impact on Nigerians economic growth and development.
1.5 SIGNIFICANCE OF THE STUDY.
The
significance of this research work lies in the fact that if the cause
of the unstable exchange rate of the naira is identified and corrected,
the economy will rapidly grow and develop into an advance one. This is
so because if the unstable exchange rate of naira is proved to be
affecting the macro- economy major variables badly, including Real
exchange rate, Real interest rate, inflation rate, gross domestic
product and trade openess of the country, attempts should be made to
stabilize the exchange rate. This is because these variables are gauge
for the measurement of growth and development of any economy.
Importantly, this study would help the government and the central bank
of Nigeria (CBN) to identify the strength and weakness of each foreign
exchange system and hence adopt the policy that suits the economy best.
This will definitely enhance growth and development of the economy, the
study will also serve as a guide to future researchers on this subject.
1.6 LIMITATIONS OF THE STUDY
The
study is structured to evaluate the Nigeria exchange rate as the pilot
of economy growth and development. The study is therefore limited to the
core economic growth in Nigeria and not the socio- political factors of
the foreign exchange rate.
1.7 THE SCOPE OF THE STUDY
This
research work is designed to cover the period 1980-2009 a period of
thirty years. The scope consist of the regulatory and deregulatory
exchange rate period i.e. the fixed exchange rate and the floating
exchange rate period. The study is based on core macro- economic
performance of Nigeria between 1980-2010 more so, it rests can core
economic growth and development in Nigeria for the period of thirty-one
years.
CHAPTER ONE -- [Total Page(s) 2]
Page 2 of 2
-
-
ABSRACT - [ Total Page(s): 1 ]This research work is centred on the impact of exchange rate fluctuation on the Nigeria’s economic growth with special emphasis on purchasing power of the average Nigeria and the level of international trade transaction. Without exchange rate the exchange of goods and services among trading partners will be faced with a lot of problems, which may virtually narrow it down to trade by barter. This exchange also is used to determine the level of output growth of the country. Hence, the rate ... Continue reading---
