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Exchange rate movements and the export sector: new empirical evidence from Nigeria

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Listed:
  • Anthony Orji
  • Jonathan E. Ogbuabor
  • Chiamaka Okeke
  • Onyinye I. Anthony Orji

Abstract

The impact of exchange rate movements on the export sector in Nigeria is examined in this study through the use of time series data and the classical linear regression model (CLRM) estimation technique. The variables employed in this study are exchange rate, agric. output, manufacturing output, total export earnings, government capital expenditure, foreign direct investment and broad money supply (M2). From the result, it becomes apparent that exchange rate movements play a significant role in the performance of the export sector in Nigeria. More specifically, the findings show that exchange rate, manufacturing output, agric. output, government capital expenditure and foreign direct investment are positively related to export earnings while the broad money supply (M2) is negatively related. It is therefore recommended that the apex bank should keep a close watch on exchange rate developments in order to enhance exchange rate stability, which will in turn contribute to the development of the export sector in Nigeria.

Suggested Citation

  • Anthony Orji & Jonathan E. Ogbuabor & Chiamaka Okeke & Onyinye I. Anthony Orji, 2020. "Exchange rate movements and the export sector: new empirical evidence from Nigeria," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 80-93,94-10.
    • Handle: RePEc:bas:econth:y:2020:i:1:p:80-93,94-106
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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