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A Bound Testing Analysis Of Exchange Rate Pass- Through To Aggregate Import Prices In Nigeria: 1980-2006

Author

Listed:
  • M. Abimbola Oyinlola

    (Department of Economics, University of Ibadan)

  • M. Adetunji Babatunde

    (Department of Economics, University of Ibadan)

Abstract

This paper examines the extent of pass-through of exchange rate into import prices for Nigeria between 1980 and 2006 using the recently developed UECM-Bounds test proposed by Pesaran et al. (2001). Empirical evidence reveals that world export prices has a dominant effect compared to exchange rate in explaining changes in Nigeria¡¯s import prices in the short and long run. The major implication for our study therefore is that exogenous factors such as world export prices appeared to be more important determinants of domestic import prices than a country¡¯s exchange rate policies.

Suggested Citation

  • M. Abimbola Oyinlola & M. Adetunji Babatunde, 2009. "A Bound Testing Analysis Of Exchange Rate Pass- Through To Aggregate Import Prices In Nigeria: 1980-2006," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 34(2), pages 97-109, December.
    • Handle: RePEc:jed:journl:v:34:y:2009:i:2:p:97-109
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    References listed on IDEAS

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    Cited by:

    1. Adekunle, Wasiu & Tiamiyu, Ajao, 2018. "Exchange rate pass-through to consumer prices in Nigeria: An asymmetric approach," MPRA Paper 88797, University Library of Munich, Germany.
    2. Ibrahim Abdulhamid Danlami, 2020. "Revisiting the West African Commonwealth Countries’ Exchange Rate Pass-Through to Inflation," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(1), pages 70-77, March.
    3. Naz, Farah & Mohsin, Asma & Zaman, Khalid, 2012. "Exchange rate pass-through in to inflation: New insights in to the cointegration relationship from Pakistan," Economic Modelling, Elsevier, vol. 29(6), pages 2205-2221.
    4. Ojonugwa Usman & Muhammad Sani Musa, 2018. "Revisiting Exchange Rate Pass-Through to Consumer Price Inflation in Nigeria: A Cointegrated Vector Autoregressive Approach," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(1), pages 60-67, March.
    5. Mehmet BALCILAR & Ojonugwa USMAN & Muhammad Sani MUSA, 2020. "The Long-Run and Short-Run Exchange Rate Pass-Through during the Period of Economic Reforms in Nigeria: Is it Complete or Incomplete?," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 151-172, March.
    6. Foluso Olugbenga Aribaba & Abdul-Lateef Olamide Ahmodu & Rotimi Oladele & Adesina Saliu Yusuff & Ridwan Banji Olaleye, 2019. "The Role of Deposit Money Banks’ Loan Facilities in Financing Small and Medium-Scale Enterprises in Nigeria," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 8, July.
    7. Alarudeen Aminu & Joshua Adeyemi Afolabi, 2024. "The Asymmetric Effect Of Exchange Rate Pass-Through To Domestic Prices: Evidence From Nigeria," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 69(243), pages 117-141, October –.
    8. Kamel Helali & Maha Kalai, 2015. "Exchange rate pass-through to domestic prices in Tunisia: a short- and long-run analysis," International Journal of Monetary Economics and Finance, Inderscience Enterprises Ltd, vol. 8(3), pages 282-301.

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    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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