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Exchange Rate Regimes and Economic Performance in Nigeria: A Comparative Analysis.

JOURNAL:MAZEDAN INTERNATIONAL BUSINESS REVIEW

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# Authors First Online DOI Downloads Citations
1. Gwaison Panan Danladi 20 Dec 2021 na 3 0

Abstract

For a decade, Nigeria has witnessed changes in its exchange rate regime which have influenced the structure of the Nigerian economy in various ways. This study was thus conducted to compare the impact of the exchange rate regimes on the economic performance of Nigerians from (1960-2014). This time period has been divided into two parts: the fixed exchange rate system (1960-1985) and the flexible exchange rate system (1985-present) (1986-2014). The ex post facto research approach was used in this study, allowing the researcher to use secondary data for the periods in order to assess the two hypotheses mentioned in the study. To analyze the data, the researcher used e-view8.0 using the Ordinary Least Square (OLS) method. The results suggest that the fixed exchange rate system has a large beneficial influence on the Nigerian economy's performance, whereas the flexible exchange regime has a good but negligible impact. It has been suggested that the current system of flexible exchange rates be fine-tuned to allow for government action in fixing exchange rates as necessary. The government should undertake an import substitution program to save foreign reserves and improve the balance of payments position among other recommendation were made.


Keywords

Exchange Rate, Exchange Rate Regime, Fixed Exchange Rate, Flexible Exchange Rate, Gross Domestic Product (GDP), Privatization, and Commercialization


References
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    [2]           Aliyu, S.R.U. (2011). Impact of oil price shock and exchange rate volatility on economic growth in Nigeria: An Empirical Investigation, Research Journal of International Studies.

    [3]           Asher O. J (2012). The impact of exchange rate fluctuation on Nigeria economic growth (1980 – 2010). Unpublished B.sc Thesis of Caritas University Emene, Enugu State, Nigeria.

    [4]           Azeez, B.A., Kolapo, F.T & Ajayi, L.B (2012). Effect of exchange rate volatility on macroeconomic performance in Nigeria. Interdisciplinary Journal of Contemporary Research in Business. 4(1), 149-155.

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