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Cash Crop Output and Foreign Currency Exchange Rate in Nigeria: A Vector Error Correction Model Analysis

Author

Listed:
  • Alexander Olawumi Dabor (PhD)

    (Department of Accounting, Edo State University Uzairue, Nigeria)

  • UMORU David

    (Department of Accounting, Edo State University Uzairue, Nigeria)

  • eauty Ekiomado Eguasa (PhD)

    (Department of Accounting, Faculty of Social and Management Sciences Benson Idahosa University Benin, City-Edo State, Nigeria)

  • LOVY Omote-Ivie Atarere (PhD)

    (College of Education Mosogar Delta State- Nigeria)

  • Victor Chukwudeme Odu (PhD, FCA)

    (The West African Examinations Council, Lagos, Nigeria)

  • Abusomwa Racheal Eloho (PhD)

    (Department of Accounting, Faculty of Social and Management Sciences Benson Idahosa University Benin, City-Edo State, Nigeria)

Abstract

This study examined the relationship among cash crop exportation, real exchange rate, nominal exchange rate, and exchange volatility. This study focuses on the effects of the exchange rate on cash crop exportation in Nigeria. This study covers a four-decade period between, 1980 and 2020. The study used a pairwise granger, Distributive Lag (ARDL) bounds testing approach to co-integrate the long-run relationship among the variables. The outcome of the study shows that there is unidirectional causality between cash crop production and nominal exchange in the long run. The result also reveals that there is unidirectional causality between exchange rate volatility in the long run. The result further shows that there is a bidirectional causality between exchange rate volatility and the real exchange rate. This study recommended that the government should participate actively in the money market in order to effectively guard the volatility of the market which will go a long way to enhance economic stability.How to Cite: Alexander Olawumi Dabor, UMORU David, Beauty Ekiomado Eguasa, LOVYÂ Omote-Ivie Atarere, Victor Chukwudeme Odu, Abusomwa Racheal Eloho, 2022. "Cash Crop Output and Foreign Currency Exchange Rate in Nigeria: A Vector Error Correction Model Analysis." Journal of Agriculture and Crops, vol. 9, pp. 187-198.

Suggested Citation

  • Alexander Olawumi Dabor (PhD) & UMORU David & eauty Ekiomado Eguasa (PhD) & LOVY Omote-Ivie Atarere (PhD) & Victor Chukwudeme Odu (PhD, FCA) & Abusomwa Racheal Eloho (PhD), 2023. "Cash Crop Output and Foreign Currency Exchange Rate in Nigeria: A Vector Error Correction Model Analysis," Journal of Agriculture and Crops, Academic Research Publishing Group, vol. 9(2), pages 187-198, 04-2023.
    • Handle: RePEc:arp:jacarp:2023:p:187-198
    DOI: https://doi.org/10.32861/jac.92.187.198
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    References listed on IDEAS

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