EXCHANGE RATE FLUCTUATIONS AND NIGERIA'S CAPITAL ACCOUNT

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Published: Apr 30, 2018
DOI: https://doi.org/10.18196/jesp.19.1.4297
Keywords:
Exchange rate, nominal domestic credit, balance of payments

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Ibrahim Abidemi Odusanya
Olabisi Onabanjo University Ago-Iwoye Nigeria
Adesola Bolaji Adesoye
Olabisi Onabanjo University, Ago-Iwoye
Ayinla Idris Gbadamosi
Olabisi Onabanjo University Ado-Iwoye

Abstract

This paper examines the effect of exchange rate fluctuations on the capital account in Nigeria from 1980 to 2015. The data used for the study were retrieved from the Central Bank of Nigeria Bulletin. The study employed Johansen co-integration test, Error Correction Model (ECM) and Fully Modified Ordinary Least Square (FMOLS). Evidence from the study shows that exchange rate has no effect on the capital account. As a result of the study, production in the Nigerian economy must be encouraged through availability of domestic credit while market determined interest rate should be encouraged to stimulate economic growth and investment

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How to Cite
Odusanya, I. A., Adesoye, A. B., & Gbadamosi, A. I. (2018). EXCHANGE RATE FLUCTUATIONS AND NIGERIA’S CAPITAL ACCOUNT. Jurnal Ekonomi &Amp; Studi Pembangunan, 19(1), 35–40. https://doi.org/10.18196/jesp.19.1.4297
Issue
Vol. 19 No. 1: April 2018
Section
Articles

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Author Biography

Adesola Bolaji Adesoye, Olabisi Onabanjo University, Ago-Iwoye

Department of Economics

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