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An Empirical Re-examination of Exchange Rate-Trade Balance Nexus in Nigeria

African Journal of Economic Policy

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Field Value
 
Title An Empirical Re-examination of Exchange Rate-Trade Balance Nexus in Nigeria
 
Creator Oyinlola, MA
Omisakin, OA
Adeniyi, OA
 
Subject Trade balance; Exchange rate; Autoregressive distributed lag
 
Description The Nigerian exchange rate-trade balance nexus was re-examined. The long run relationship between these variables was explored using the Gregory-Hansen cointegration approach on a data sample between 1980:Q1 and 2010:Q4. Prior to this, three efficient integration tests that can overcome potentially severe finite sample power and size problems suffered by the standard methods were tactfully pursued for robustness. The short run impact analysis was done in the error correction framework. The analyses showed that exchange rate depreciation led to trade balance deterioration in both the short run and the long run. Thus, this study could not find support for J-curve in Nigeria. Some suggestions on the way forward were put forth.Keywords: Trade balance; Exchange rate; Autoregressive distributed lagJEL classification: F13; F31; C32
 
Publisher Department of Economics, University of Ibadan
 
Contributor —
 
Date 2014-02-26
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.ajol.info/index.php/ajep/article/view/101520
10.4314/ajep.v20i2.
 
Source African Journal of Economic Policy; Vol 20, No 2 (2013); 31-61
1116-4875
 
Language eng
 
Relation http://www.ajol.info/index.php/ajep/article/view/101520/90711
 
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