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Falling Oil Price, Exchange Rate Volatility and Marco-economic Variables in Nigeria
Journal of Investment and Management
Volume 4, Issue 1, February 2015, Pages: 25-33
Received: Jul. 13, 2015; Accepted: Jul. 17, 2015; Published: Jul. 28, 2015
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Authors
Olure Bank Adeyinka Michael, Department of Economic, Joseph Ayo Babalola University, Ikeji-Arakeji, Osun State
Gbadebo Salako, Department of Economic, Emmanuel Alayande College of Education, Oyo, Oyo State, Nigeria
Ajiteru Temilade, Department of Economic, Emmanuel Alayande College of Education, Oyo, Oyo State, Nigeria
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Abstract
With the oil price at low level in Nigeria, exchange rate volatility has been manifested at different exchange rate regimes in Nigeria, the study look at the relationship between exchange rate volatility and Macroeconomics variables in Nigeria between 1985-2014. Secondary data were collected from Central Bank Statistical Bulletin, employing Johansen Error Correction Model (ECM) Technique to estimate the collected time-series data and General Conditional Heteroskedasticity (GARCH) to measure volatility. It is therefore observed and recommended that the Nigeria government should employ greater policy sensitivity towards the openness of the economy so that the capital flows that come through foreign direct investment (FDI) will be beneficial to the economy as a whole.
Keywords
Exchange Rate, Foreign Direct Investment, Economic Growth, Marco-economic Variable
To cite this article
Olure Bank Adeyinka Michael, Gbadebo Salako, Ajiteru Temilade, Falling Oil Price, Exchange Rate Volatility and Marco-economic Variables in Nigeria, Journal of Investment and Management. Vol. 4, No. 1, 2015, pp. 25-33. doi: 10.11648/j.jim.20150401.14
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