ABSTRACT
The study investigated effect of exchange rate fluctuation on economic growth of Nigeria from 1986-2016. It adopted ex post facto research design and extracted data from the central bank of Nigeria statistic bulletins. The study used real gross domestic product and per capita income as proxies for economic growth while exchange rate, inflation rate and interest rate were used as the independent variable. Inflation rate and interest rate were adopted as extraneous, variable. 'The researcher conducted unit root test to ascertain the stationarity of the variables. Real gross domestic product interest and inflation rates are stationary at level while per capital income and exchange rate variable are stationary at first difference. The study therefore used the Auto regressive distributed lag (Bound Test) to estimate the relationship of the variable. It was found that exchange rate has significant effect on real gross domestic product. The study hence conducted that exchange rate fluctuation has a significant effect on economic growth of Nigeria and recommends that: (a) government should exchange rate to be determined by the dynamic of the market so that there would be an even growth in the economy (b) government should ensure that.the purchasing power is based on the reality on the economy with a view to the exchange, interest and inflation rates and encourage an equal measure of the production of goods and services.
TABLE OF CONTENTS
Cover Page
Title page II
Declaration 111
Certification iv
Dedication IV
Acknowledgments v
Table of Contents YI
Abstract
CHAPTER ONE: INTRODUCTION
1.1 Background to the study
1.2 Statement of the problem ,,
1.3 Objectives of the Study 4
1.4 Research Questions 4
1.5 Research hypotheses 4
1.6 Scope of the Study 4
1.7 Significance of the Study 5
l.8 Limitations of the study 5
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.0 Conceptual Framework 6
2.1 The Objectives of Exchange Rate Policy in Nigeria 8
2.1. l Exchange Rate
2.1.10.4 Top Challenges Currently Faced by the Manufacturing Industry 20
2.1. l 0.5 Solution for the Problem Faced in a Manufacturing Company
2.1.10.6 The Main Objectives and Strategies of Manufacturing
2.1.10.7 Advantages of Manufacturing Company
2.1.1 O .8 Disadvantages of Manufacturing Sector
2.1.10.9 Overview of Manufacturing
2.1. l 0.10 Summary on the Nigerian Manufacturing Sector
2.1.10.11 The Role of Central Bank of Nigeria in Exchange Rate Management
2.2 Theoretical Framework 25
2.2.1 Optimal Currency Area (OCA) Theory
2.2.2. Purchasing Power Parity
2.2.3. The Monetary Model of Exchange Rates
2.2.4. The Portfolio Balance Approach
2.3 Empirical Review 28
CHAPTER THREE: METHODOLOGY
3 .1 Research Design
3.2 Area of the study
3.3 Method of Data collection
3.4 Validity and reliability of data
3.5 Method of Data Analysis
3.5.2 Coefficient ofMultiple Determinations (R.2)
3.5.3 F-Test of Significance
3.5.4 T-Test of Significance
3.6 Model specification 35
CHAPTER FOUR: DATA PRESENTATION AND DISCUSSION OF RESULTS
4.1. Data Presentation 36
4.1.1. Data on Real Gross Domestic Product 36
4.1.2. Data on Per Capita Income 37
4.1.3. Data on Exchange 38
4.2. Discussion on Augmented Dickey-Fuller Unit Root Test Result
4.3. Discussion on Effect fExchange Rate Fluctuation on Real Gross Domestic Product 41
4.4. Discussion on Effect of Exchange Rate Fluctuation on Per Capita Income
4.5. Hypotheses Testing
4.5.1. Test of Hypothesis One
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1. Summary of Findings 51
5.3. Recommendations 53
References 54
Appendices
UZOH, M (2020). Effect Of Exchange Rate Fluctuation On Economic Growth Of Nigeria. Mouau.afribary.org: Retrieved Oct 30, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-exchange-rate-fluctuation-on-economic-growth-of-nigeria
MOUAU/ACC/14/24435, UZOH. "Effect Of Exchange Rate Fluctuation On Economic Growth Of Nigeria" Mouau.afribary.org. Mouau.afribary.org, 23 Jun. 2020, https://repository.mouau.edu.ng/work/view/effect-of-exchange-rate-fluctuation-on-economic-growth-of-nigeria. Accessed 30 Oct. 2024.
MOUAU/ACC/14/24435, UZOH. "Effect Of Exchange Rate Fluctuation On Economic Growth Of Nigeria". Mouau.afribary.org, Mouau.afribary.org, 23 Jun. 2020. Web. 30 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-exchange-rate-fluctuation-on-economic-growth-of-nigeria >.
MOUAU/ACC/14/24435, UZOH. "Effect Of Exchange Rate Fluctuation On Economic Growth Of Nigeria" Mouau.afribary.org (2020). Accessed 30 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-exchange-rate-fluctuation-on-economic-growth-of-nigeria