IDEAS home Printed from https://ideas.repec.org/a/bhx/ijecop/v4y2024i1p27-43id1644.html
   My bibliography  Save this article

Sectoral Utilization of Foreign Exchange and the Policy Implications for Economic Growth in Nigeria (1997 - 2022)

Author

Listed:
  • Winifred Chinyere Uchendu
  • Professor Sarah .O. Anyanwu

Abstract

Purpose: The purpose of this study is to investigate the effect of sectoral utilization of foreign exchange and the policy implications for economic growth in Nigeria. Methodology: The methodology involved the use of annual time series data covering 1997 to 2022 for pre-diagnostic tests for unit roots which showed that the variables used in the study: economic growth (proxied by real gross domestic product), visible transactions, invisible transactions, treasury bill rate, and exchange rate, were stationary in the first difference. Hence, after first differencing the data, the Ordinary Least Squares (OLS) estimation method was used to estimate the model. Findings: The findings of the study showed that visible and invisible foreign exchange utilization valid for foreign exchange transactions, in addition to exchange rate and Treasury bill rate impacted positively and significantly on economic growth in Nigeria during the study period. The results of the study strengthened the theoretical basis for the use of relevant policies to grow economies generally, and that of Nigeria in particular. Unique contributor to theory, policy and practice: By implication, the governments at all tiers should endeavor to provide the enabling environment for greater availability and utilization of foreign exchange to further improve economic growth and sustainable development in Nigeria.

Suggested Citation

  • Winifred Chinyere Uchendu & Professor Sarah .O. Anyanwu, 2024. "Sectoral Utilization of Foreign Exchange and the Policy Implications for Economic Growth in Nigeria (1997 - 2022)," International Journal of Economic Policy, CARI Journals Limited, vol. 4(1), pages 27-43.
    • Handle: RePEc:bhx:ijecop:v:4:y:2024:i:1:p:27-43:id:1644
    as

    Download full text from publisher

    File URL: https://www.carijournals.org/journals/index.php/IJECOP/article/view/1644/2014
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bhx:ijecop:v:4:y:2024:i:1:p:27-43:id:1644. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chief Editor (email available below). General contact details of provider: https://www.carijournals.org/journals/index.php/IJECOP/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.