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Impact of Exchange Rate Deregulation on manufacturing Sector Performance in Nigeria

Tams-Alasia, Otokini and Olokoyo, F. O. and Okoye, Lawrence U. and Ejemeyovwi, Jeremiah Ogaga (2018) Impact of Exchange Rate Deregulation on manufacturing Sector Performance in Nigeria. International Journal of Environment, Agriculture and Biotechnology, 3 (3). pp. 994-1001. ISSN 2456-1878

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Abstract

The study examined the impact of exchange rate deregulation on manufacturing output performance in Nigeria over the period 1980 to 2016. The normalized cointegration technique was used to test for long-run relationship between exchange rate and manufacturing output while the granger causality test was used to ascertain the direction of causality between them. Also, the error correction mechanism (ECM) was used to calculate the speed of adjustment of the model to short-run disequilibrium condition. The empirical findings revealed that exchange rate has non-significant positive long-run effect on manufacturing industry output. However, unidirectional causal impact of exchange rate on manufacturing output was established using the pairwise granger causality test. Based on the above result, it is recommended that in discharging the mandate of exchange rate management, the monetary authorities should aim at stabilizing exchange rate through the use of appropriate monetary policy tools as well as support export diversification programmes in order to enhance foreign exchange inflow

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
Divisions: Faculty of Law, Arts and Social Sciences > School of Management
Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Patricia Nwokealisi
Date Deposited: 27 Jun 2018 10:02
Last Modified: 27 Jun 2018 10:02
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/11066

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