The Effect of Exchange Rate on Gross Domestic Product (GDP) on the Nigerian Economy using ARDL-ECM approach
Keywords:
Auto-regressive distributed lag, error correction model, official exchange rate, gross domestic productAbstract
M.H. Ramat, Y. Zakari*, M. Usman, I. Muhammad, J.Y. Falgore and H. G. Dikko
This paper investigates the effect of the exchange rate on the gross domestic product (GDP) on the Nigerian economy from 1981-2021. The data was obtained from the CBN annual statistical bulletin. The application of the ARDL-ECM procedure for the analysis indicated that GDP in Nigeria is not responsive to exchange rate movement on the long run. A short run relationship was found to exist between GDP and exchange rate which is statistically significant. The Error correction mechanism (ECM) was found to have a short run dis-equilibrium adjustment of about 68.75% for correcting any deviation from the long run equilibrium. The model did not have a serial correlation but was found to be stable, which indicated that the result maybe appropriate for policy stipulation. Findings from the data obtained confirmed that policy makers should not completely rely on exchange rate manipulation as an instrument to boost the economy but should consider other economic variables to strengthen the GDP of the economy.
Downloads
Published
Issue
Section
Most read articles by the same author(s)
- Jibril Yahaya Kajuru, Hussaini Garba Dikko, Aminu Suleiman Mohammed, Aliyu Ibrahim Fulatan, Generalized Odd Gompertz-G Family of Distributions: Statistical Properties and Applications , Communication In Physical Sciences: Vol. 10 No. 2 (2023): VOLUME 10 ISSUE 2
- Yahaya Zakari, Isah Muhammad, Najmuddeen Muhammad Sani, Alternative Ratio-Product Type Estimator in Simple Random Sampling , Communication In Physical Sciences: Vol. 5 No. 4 (2020): VOLUME 5 ISSUE 4
Similar Articles
- M. M. Ndamitso, M. Musah, J. T. Mathew, V. T. Bissala, Comparative Nutritional Analysis of Daddawa Made from Fermented Parkia biglobosa and Glycine max Seeds , Communication In Physical Sciences: Vol. 5 No. 3 (2020): VOLUME 5 ISSUE 3
- Ase M. Esabai, Edikan E. Akpanibah, Sylvanus K. Samaila, On Investment Model for a CARA Pension Scheme Member with Return of Contributions Clause for Mortgage Housing Scheme , Communication In Physical Sciences: Vol. 11 No. 3 (2024): VOLUME 11 ISSUE 3
- Ugwuowo, Fidelis Ifeanyi, Use of Discriminant Analysis in Time Series Model Selection , Communication In Physical Sciences: Vol. 3 No. 1 (2018): VOLUME 3 ISSUE 1
- Fatima Binta Adamu, Muhammad Bashir Abdullahi, Sulaimon Adebayo Bashir, Abiodun Musa Aibinu, Conceptual Design Of A Hybrid Deep Learning Model For Classification Of Cervical Cancer Acetic Acid Images , Communication In Physical Sciences: Vol. 12 No. 2 (2025): VOLUME 12 ISSUE 2
- Pius Onyeoziri Ukoha, Uchechukwu Ruth Obeta , Reduction of the Adipato-Bridged Binuclear Iron(III) Complex, [(Fesalen)2adi] by Thioglycolic Acid: Kinetic and Mechanistic Study , Communication In Physical Sciences: Vol. 3 No. 1 (2018): VOLUME 3 ISSUE 1
- Patricia Ese Umoru, Ameh David Onu, The Redox Reaction between Di-μ-Oxo-Tetrakis (2, 2’- bipyridine) – Dimanganese (III, IV) Perchlorate and 1, 3-Dihydroxybenzene in Hydrochloric Acid , Communication In Physical Sciences: Vol. 6 No. 1 (2020): VOLUME 6 ISSUE 1
- Chisimkwuo John, Okoroafor Promise Izuchukwu, Amobi Chinenye Theresa, Application of Factor Analysis in the Modelling of Inflation Rate in Nigeria , Communication In Physical Sciences: Vol. 10 No. 2 (2023): VOLUME 10 ISSUE 2
- Yusuf Mohammad Auwal, Hussaini Shuaibu, Muhammad Sani Isa, Study of Symmetric Nuclear Matter Properties in Non-linear Walecka Model via Relativistic Mean-field approximation at zero-temperature , Communication In Physical Sciences: Vol. 12 No. 2 (2025): VOLUME 12 ISSUE 2
- Isah Muhammad, Gafar Matanmi Oyeyemi, Generalized Variance Estimator using Two Auxiliary Variables under Stratified Random Sampling , Communication In Physical Sciences: Vol. 12 No. 2 (2025): VOLUME 12 ISSUE 2
- Oladimeji Enock Oluwole, Umeh Emmanuel Chukwuebuka, Idundun Victory Toritseju, Koffa Durojaiye Jude , Obaje Vivian Onechojo , Petinrin Moses Omolayo , Adeleke Joshua Toyin, The performance analysis of a Wood-Saxon driven Quantum-Mechanical Carnot Engine , Communication In Physical Sciences: Vol. 11 No. 3 (2024): VOLUME 11 ISSUE 3
You may also start an advanced similarity search for this article.