AROTIBA, ABIMBOLA FLORENCE and Covenant University, Theses (2021) IMPACT OF CURRENCY PERFORMANCE ON THE INTERNATIONAL BUSINESS OF DEVELOPING COUNTRIES: EVIDENCE FROM NIGERIA AND GHANA (1990-2019). Masters thesis, COVENANT UNIVERSITY.
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Abstract
Normally, trade between two or more regions necessitate the conversion of one legal tender to that of another. Exchange rate determines prices of both domestic goods as well as foreign goods and Nigeria as well as Ghana being import dependent countries are faced with a inflation, increase in interest rate, decline in the standard of living, increase in cost of production, increase in external debt etc. As a result, this study analyzes the influence currency performance has on the international business of both Nigeria and Ghana. In the context of this study, currency performance would imply currency depreciation. The research adopted the Ordinary Least Square Method for analysis after the unit root tests of variables for both countries showed it was integrated at order I(1). The theory, which the study adopts, is the Standard Theory of International trade. The results showed that currency performance positively and significantly affects foreign direct investment in Nigeria as well as Ghana. Also, currency performance positively and significantly affects import and exports both in Nigeria and Ghana. For the impact on balance of payment, the findings revealed currency performance positively affects balance of payments in Nigeria. However, this is found to be insignificant. For Ghana, the result shows that currency performance has a negative relationship with the balance of payments. From the findings, It is important that the components of the balance of payment be studied closely in order to identify trends that a country can find harmful or beneficial to its economy. Using just Import and Export to measure International trade will not help the nation make rational decisions regarding economic dealings with other countries. The study also recommends, that the capital market should be internationalized such that foreign institutional investors can invest in Nigerian based as well as Ghanaian-based instruments.
| Item Type: | Thesis (Masters) |
|---|---|
| Uncontrolled Keywords: | Currency performance, Exchange Rate, International Trade, Imports, Exports. |
| Subjects: | H Social Sciences > HG Finance |
| Divisions: | Faculty of Law, Arts and Social Sciences > School of Social Sciences |
| Depositing User: | Mrs Hannah Akinwumi |
| Date Deposited: | 21 Jan 2022 11:09 |
| Last Modified: | 21 Jan 2022 11:09 |
| URI: | http://eprints.covenantuniversity.edu.ng/id/eprint/15583 |
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