An Investigation of The Responsiveness of Real Exchange Rate to International Oil Price Fall in Nigeria, 1981 – 2018
Authors: Obinuba, Chinwe Blessing, Onyia, Chinedu Callistus, Mbah, Chris Chukwuemeka
Journal: Contemporary Journal of Management (CJM), ISSN 2766-1431
Citation: CJM 2(2), 2020-07-31.
DOI: 10.70878/cjm.2020.3a80946e
PDF: Download full-text PDF
Type: Original Research
Abstract
This an is an Investigation of the Responsiveness of Real Exchange Rate to International Oil Price Fall in Nigeria, 1981 – 2018. The specific objectives are to; Examine the causal relationship between real exchange rate and international oil price fall in Nigeria. Ascertain the degree of association between real exchange rate and international oil price fall in Nigeria. The study adopted ex post facto research design. The data employed for this work is time series which are secondary in nature. The secondary data was appropriate because of the macroeconomic variables involved. It is an annualized time series data which cover 1981 2018, They are drawn from the Statistical Bulletins of Central Bank of Nigeria, Organization of the Petroleum Exporting Countries (OPEC) annual statistical bulletin, and the Nigerian National Petroleum Corporation (NNPC) annual statistical bulletin; these data were suitable because they show the trend of international oil prices and exchange rate overtime. The researcher adopted multiple regression analysis based on the classical linear regression model, otherwise known as Ordinary Least Square (OLS) technique, causality test and correlation test etc. The indicate that, there is bidirectional causality that exists between real exchange rate and crude oil price fall in Nigeria economy. While there is positive and significant effect between real exchange rate and international oil price fall in Nigeria economy.
Keywords
Real Exchange Rate, International Oil Price Fall, Nigeria AUTHORSHIP Obinuba, Chinwe Blessing, PhD 1, Onyia, Chinedu Callistus, PhD 2 and Mbah, Chris Chukwuemeka, PhD 3
Full Text
This an is an Investigation of the Responsiveness of Real Exchange Rate to International Oil Price Fall in Nigeria, 1981 – 2018. The specific objectives are to; Examine the causal relationship between real exchange rate and international oil price fall in Nigeria. Ascertain the degree of association between real exchange rate and international oil price fall in Nigeria. The study adopted ex post facto research design. The data employed for this work is time series which are secondary in nature. The secondary data was appropriate because of the macroeconomic variables involved. It is an annualized time series data which cover 1981 – 2018, They are drawn from the Statistical Bulletins of Central Bank of Nigeria, Organization of the Petroleum Exporting Countries (OPEC) annual statistical bulletin, and the Nigerian National Petroleum Corporation (NNPC) annual statistical bulletin; these data were suitable because they show the trend of international oil prices and exchange rate overtime. The researcher adopted multiple regression analysis based on the classical linear regression model, otherwise known as Ordinary Least Square (OLS) technique, causality test and correlation test etc. The indicate that, there is bidirectional causality that exists between real exchange rate and crude oil price fall in Nigeria economy. While there is positive and significant effect between real exchange rate and international oil price fall in Nigeria economy.