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An Estimated New Keynesian Phillips Curve for Nigeria

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  • Mutiu Gbade Rasaki

    (Emmanuel Alayande College of Education)

Abstract

This paper estimates a New Keynesian Phillips curve (NKPC) model for the Nigerian economy. This is to identify the structural parameters determining inflation dynamics in Nigeria. Previous studies that examined the dynamics of inflation in Nigeria have largely estimated the traditional Phillips curve. This study employs quarterly time series data on six macroeconomic variables from 1990:1 to 2012:4. The study adopts the Generalized Method of Moments (GMM) technique to analyse the data. The findings indicate that both backward-looking and forward-looking behaviour are significant determinants of inflation dynamics in Nigeria. The results, however, suggest that backwardlooking behaviour seems to be more quantitatively important in inflation dynamics. Moreover, the findings indicate that price of foreign input, money supply and the lending rate are the main drivers of inflation in Nigeria.

Suggested Citation

  • Mutiu Gbade Rasaki, 2017. "An Estimated New Keynesian Phillips Curve for Nigeria," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 13(2), pages 203-211, April.
    • Handle: RePEc:dug:actaec:y:2017:i:2:p:203-211
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    References listed on IDEAS

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    Cited by:

    1. Angeline B. Rohoia & Parmendra Sharma, 2021. "Do Inflation Expectations Matter for Small, Open Economies? Empirical Evidence from the Solomon Islands," JRFM, MDPI, vol. 14(9), pages 1-18, September.
    2. Yazgan M. Ege & Yilmazkuday Hakan, 2005. "Inflation Dynamics of Turkey: A Structural Estimation," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 9(1), pages 1-15, March.
    3. Effiong, Ubong Edem & Akpan, Ekomabasi & Ekpe, John Polycarp, 2022. "Testing the Validity of the Inflation-Unemployment Nexus within the West African Monetary Zone," MPRA Paper 119722, University Library of Munich, Germany, revised 08 Aug 2022.
    4. Oladunni, Sunday, 2020. "Oil Price Shocks and Macroeconomic Dynamics in an Oil-Exporting Emerging Economy: A New Keynesian DSGE Approach," MPRA Paper 104551, University Library of Munich, Germany, revised 12 Jun 2020.

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