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Assessing the Impact of Nigeria's Naira Depreciation on Output and Inflation

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  • Akinlo, Anthony Enisan
  • Odusola, Ayodele

Abstract

empirical evidence in support of the argument that keeping real exchange rate persistently devalued may lead to a permanent higher level of inflation have been provided (Kamin, 1985; Calvo et al. 1994). However, probably because of the relatively recent origin of serious exchange rate depreciation in sub-Saharan Africa countries especially Nigeria, when compared with other regions e.g. Latin America and Asia, not many studies have been reported on the subject. The existing studies on effect of persistent exchange-rate depreciation in Nigeria are based on either regression or simulation approach rather than VAR approach. This present study intends to fill these gaps by not only focusing the study on Nigeria but also adopting restricted vector Autoregressive model thereby providing basis for comparison with existing results obtained for other countries.

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  • Akinlo, Anthony Enisan & Odusola, Ayodele, "undated". "Assessing the Impact of Nigeria's Naira Depreciation on Output and Inflation," UNDP Africa Economists Working Papers 307333, United Nations Development Programme (UNDP).
  • Handle: RePEc:ags:undpae:307333
    DOI: 10.22004/ag.econ.307333
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    Cited by:

    1. Ekundayo P. Mesagan & Ismaila A. Yusuf, 2019. "Economic Stabilisation and Performance in West Africa: The Role of Fiscal and Monetary Policy," Working Papers of the African Governance and Development Institute. 19/097, African Governance and Development Institute..
    2. Shi, Jianhuai, 2007. "Are Currency Appreciations Contractionary in China?," 2007: China's Agricultural Trade: Issues and Prospects Symposium, July 2007, Beijing, China 55020, International Agricultural Trade Research Consortium.
    3. J. O. Olusi & M. A. Olagunju, 2005. "The Primary Sectors of the Economy and the Dutch Disease in Nigeria," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(2), pages 159-175.
    4. Udo Ginikachi Cynthia & Nwezeaku Nathaniel Chinedum & Kanu Success Ikechi, 2021. "Effects of Capital Market Development on the Economic Growth of Nigeria," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 7(2), pages 30-46, June.
    5. Hakan Berument & Eray Yucel, 2008. "Effects of USD-Euro parity on a small open economy: evidence from Turkey," Applied Economics, Taylor & Francis Journals, vol. 40(16), pages 2165-2174.
    6. W.A. Isola & E.P. Mesagan, 2018. "Monetary Policy and Small and Medium Enterprises’ Performance in Selected West African Countries," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 21(69), pages 14-23, September.
    7. Perekunah Eregha & Arcade Ndoricimpa & Solomon Olakojo & Mamello Nchake & Owen Nyang'oro & Edith Togba, 2016. "Nigeria: Should the Government Float or Devalue the Naira?," African Development Review, African Development Bank, vol. 28(3), pages 247-263, September.
    8. Saibu M O, 2011. "Sectoral Output Responses to Trade Openness, Oil Price and Policy Shocks in Nigeria: A CVAR Approach," Journal of Social and Development Sciences, AMH International, vol. 1(2), pages 48-59.
    9. Odusola, Ayodele, "undated". "Economics of Exchange Rate Management," UNDP Africa Economists Working Papers 307341, United Nations Development Programme (UNDP).

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