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Climate Change and Macro Prices in Nigeria: A Nonlinear Analysis

Author

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  • Victoria Foye

    (University of Ibadan, Nigeria)

Abstract

The study analyses the impacts of climate change on macro prices (food prices, interest rate, and exchange rate). Secondary data from 1960--2019 are used, and the nonlinear autoregressive distributed lag method is employed accordingly. The results reveal that there is a long-run relationship among the variables employed. In addition, asymmetry only exists between food prices and exchange rate in the short run while it only subsists for all macro prices, except interest rate as a dependent variable, in the long run. Also, the relative effects of climate change on macro prices grade food prices with the highest effect. In fact, the continual need for climate policies in both financial and real sectors to douse the effect of climate change on macro prices cannot be overemphasised. Therefore, this study recommends that the Nigerian government and policymakers should ratify and pursue policy initiatives and strategies based on both negative and positive changes in macro prices.

Suggested Citation

  • Victoria Foye, 2022. "Climate Change and Macro Prices in Nigeria: A Nonlinear Analysis," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 20(2 (Summer), pages 167-203.
    • Handle: RePEc:mgt:youmgt:v:20:y:2022:i:2:p:167-203
    DOI: 10.26493/1854-6935.20.167-203
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    References listed on IDEAS

    as
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    Cited by:

    1. Prof. Hyacinth Ichoku & Dr. Ihuoma Anthony & Dr. Tosin Olushola & Apinran Martins, 2023. "Analyzing the Evolving Relationships among Climate Change, Insecurity, and Food Price Inflation in Nigeria: NARDL Approach," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(11), pages 100-124, November.

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    More about this item

    Keywords

    asymmetry; climate change; macro prices; nonlinear ARDL;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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