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Empirical Examination of Sources of Inflation in Nigeria

Okoye, Lawrence U. and OKOH, JOHNSON IFEANYI and Omankhanlen, A. E and Olokoyo, F. O. and Ahmed, A. (2020) Empirical Examination of Sources of Inflation in Nigeria. In: 33rd International Business Information Management Association Conference, 10-11 April 2019, Granada, Spain.

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The paper focused on identifying major factors that cause inflation in Nigeria using secondary data for 1981-2016. It specifically examined how the dynamics of key economic fundamentals like external debt, exchange rate, output growth rate, interest rate, fiscal deficits and money supply explain inflationary trend in Nigeria. Based on the result of the unit root test, the econometric technique of ordinary least squares was adopted in the study. The study produced strong empirical support for positive effect of exchange rate, fiscal deficits and money supply on inflation. However, there is no evidence from the study that output growth rate, external debt, and interest rate cause significant changes in inflation rate in Nigeria. Within the scope of our study, there is substantial evidence to conclude that inflation in Nigeria is driven by exchange rate dynamics, fiscal deficit and money supply.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Inflation, Economic fundamentals, Econometric technique
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HG Finance
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Patricia Nwokealisi
Date Deposited: 16 Dec 2020 15:55
Last Modified: 16 Dec 2020 15:55

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