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Analysis of the selected macroeconomic variables on balance of payment in Nigeria
University West, School of Business, Economics and IT.
2022 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Given that Nigerian economy has recorded unfavourable BOP positive in recent years, it becomes imperative to study the impact of selected macroeconomic variables on BOP in Nigeria. This study therefore sought to determine the impact of exchange rate, inflation rate, interest rate differentials and trade openness on BOP in Nigeria between 1981 and 2021. This study used secondary data covering the period between 1981 and 2021 and was sourced from Central Bank of Nigeria Statistical Bulletin (2021) and World Bank Development Index in its analysis. The study employed Autoregressive Distributed Lag (ARDL) to estimate the short run and long run impact of the selected macroeconomic variables on BOP in Nigeria. The ARDL bound cointegration showed a long run relationship between BOP and selected macroeconomic variables in the country. The empirical result further showed that interest rate differentials and inflation rate have short run and long run negative impact on BOP while exchange rate and trade openness have a positive and significant impact on BOP. The study recommends, amongst others, that monetary authority should fix inflation-adjusted interest rate as well as providing businessfriendly environment in order to attract foreign investment into the country and hence improve her BOP position.

Place, publisher, year, edition, pages
2022. , p. 53
Keywords [en]
Macroeconomics, payment, Nigeria
National Category
Economics
Identifiers
URN: urn:nbn:se:hv:diva-18915Local ID: EXF800OAI: oai:DiVA.org:hv-18915DiVA, id: diva2:1681806
Subject / course
Nationalekonomi
Educational program
Magister i finans
Supervisors
Examiners
Available from: 2022-08-25 Created: 2022-07-07 Last updated: 2022-08-25Bibliographically approved

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf