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An Empirical Assessment of the Real Exchange Rate and Poverty in Nigeria


  • Ben. U. Omojimite

    (Department of Economics Delta State University, Abraka)

  • Victor E. Oriavwote

    (Department of Arts and Social Sciences, Delta State Polytechnic, Otefe-Oghara)


This paper investigated the influence of the real exchange rate on poverty within the framework of a dependent economy model. Using data covering 1980 to 2010, the result of a Vector Error Correction model (VECM) showed that the volatility of the real exchange rate has significant influence on the level of poverty in Nigeria. Thus, government policies that targets real exchange rate could play significant role in reducing the level of poverty in Nigeria, particularly if supported by basic institutions, such as those of human capital development.

Suggested Citation

  • Ben. U. Omojimite & Victor E. Oriavwote, 2012. "An Empirical Assessment of the Real Exchange Rate and Poverty in Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(1), pages 244-254, March.
  • Handle: RePEc:asi:aeafrj:2012:p:244-254

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    References listed on IDEAS

    1. Kempa, Bernd, 2005. "An oversimplified inquiry into the sources of exchange rate variability," Economic Modelling, Elsevier, vol. 22(3), pages 439-458, May.
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    More about this item


    Real Exchange Rate; Poverty; Absorption; Human Capital Development and Vector Error Correction Model;

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • F31 - International Economics - - International Finance - - - Foreign Exchange


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