An Investigation of The Responsiveness of Real Exchange Rate to International Oil Price Fall in Nigeria, 1981 – 2018
- Post by: airjournals
- July 31, 2020
- Comments off
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, PhD1, Onyia, Chinedu Callistus, PhD2 and Mbah, Chris Chukwuemeka, PhD3