Exchange rate fluctuations and manufacturing output: Stylized evidence in Nigeria

Oladipo, Olabisi Rasheedat and Onabote, Ademola and Adekanye, Folakemi and Ogunjobi, J. O. and Folarin, Esther M (2023) Exchange rate fluctuations and manufacturing output: Stylized evidence in Nigeria. DEVELOPMENT MANAGEMENT, 21 (3). pp. 32-42.

	Text Development Management_2023_Vol_21_No.3_32-42.pdf - Published Version Download (1MB)
	Text Development Management_2023_Vol_21_No.3_32-42.pdf - Published Version Download (1MB)

Abstract

One of the key engines of growth in many countries is the manufacturing sector, whose performance is impacted by the movement of the local currency. The manufacturing sector also offers opportunities like increased commerce, innovation, competitiveness, increasing exports, and productivity, which will only be possible when exchange rate is in the form of currency appreciation. The purpose of this study, therefore, was to investigate the effect of exchange rate fluctuations on Nigerian manufacturing output. The Generalized Autoregressive Conditional Heteroscedasticity technique was used in the study in order to examine the exchange rate oscillations. The result of the model estimation revealed that there is no persistence of shocks in the volatility of the exchange rate in the Nigerian economy. The business cycle stylized facts were also used to examine exchange rate volatility and the result established that exchange rate is highly volatile and has a negative effect on manufacturing output in Nigeria. The Auto Regressive Distributed Lag Bounds test was used to establish the long-run relationship and the result showed that there is a long-run relationship between exchange rate and manufacturing output. The variance decomposition and Impulse Response function were employed and the result

Item Type:	Article
Uncontrolled Keywords:	generalized autoregressive conditional heteroscedasticity; Hodrick-Prescott filter; volatility; business cycle; consumer price index
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HA Statistics H Social Sciences > HB Economic Theory
Divisions:	Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User:	MRS OLABISI POPOOLA
Date Deposited:	12 Jan 2024 15:20
Last Modified:	12 Jan 2024 15:20
URI:	https://eprints.lmu.edu.ng/id/eprint/4336

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