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Inflation Volatility and Economic Development: Evidence from Nigeria

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  • David Fielding

    (Department of Economics, University of Otago)

Abstract

We use monthly time-series data on the prices of 96 individual products in the 37 states of Nigeria to analyze the factors that drive inflation volatility. Among the significant determinants of volatility are average inflation rates, transport and communication infrastructure, consumer access to credit markets and urbanization. However, there is substantial heterogeneity across products in the relative importance of these factors.

Suggested Citation

  • David Fielding, 2008. "Inflation Volatility and Economic Development: Evidence from Nigeria," Working Papers 0807, University of Otago, Department of Economics, revised Sep 2008.
    • Handle: RePEc:otg:wpaper:0807
    as

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    File URL: http://www.otago.ac.nz/economics/research/otago077111.pdf
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    References listed on IDEAS

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    Cited by:

    1. Idoko Ahmed Itodo & Seyi Saint Akadiri & Rotimi Mathew Ekundayo, 2017. "Monetary Policy and Price Stability in Nigeria," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 3(2), pages 68-75, June.
    2. Wolassa Lawisso Kumo, 2015. "Working Paper - 216 - Inflation Targeting Monetary Policy, Inflation Volatility and Economic Growth in South Africa," Working Paper Series 2154, African Development Bank.
    3. Oseni Isiaq Olasunkanmi & Sanni Hauwa Yetunde, 2016. "Does Fiscal Deficit Granger Cause Impulsiveness in Inflation Rate in Nigeria?," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(4), pages 208-216, October.
    4. Thomas Habanabakize & Zandri Dickason-Koekemoer, 2024. "A Comparative Analysis between Intrinsic and Extrinsic Drivers of Inflation," International Journal of Economics and Financial Issues, Econjournals, vol. 14(2), pages 36-44, March.
    5. Ibrahim Abdulhamid Danlami, 2020. "Revisiting the West African Commonwealth Countries’ Exchange Rate Pass-Through to Inflation," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(1), pages 70-77, March.

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    More about this item

    Keywords

    Inflation; Volatility; Uncertainty; Nigeria;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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