IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Imports-Exports Demand Functions and Balance of Payments Stability in Nigeria: A Co-integration and Error Correction Modeling

Listed author(s):
  • Shehu Usman Rano, Aliyu

Abstract This paper assesses the determinants of import and export demand functions. The object is to empirically measure the relative strengths and weaknesses of the determinants import and export, and to examine, using the Marshall-Lerner hypothesis, the condition under which balance of payments adjustment works in the Nigerian economy. The analytical framework employed is an econometric methodology, which encompasses wide a range of tests for stationarity, cointegration and specification of an error correction model. Using data obtained from the Nigerian economy covering the period of 1970 to 2004, result of over-parameterized error correction model show significant causational relationships in the two models. Specifically, from the values of the coefficient of the current and past (lag) level of exchange rate in the two models, the paper knots balance of payments adjustment to regime of exchange rate stability in Nigeria. The paper, therefore, recommends exchange rate adjustment as potent instrument of achieving balance of payments stability in Nigeria.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
File Function: original version
Download Restriction: no

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10396.

in new window

Date of creation: 23 Mar 2007
Date of revision: 08 Jan 2008
Handle: RePEc:pra:mprapa:10396
Contact details of provider: Postal:
Ludwigstra├če 33, D-80539 Munich, Germany

Phone: +49-(0)89-2180-2459
Fax: +49-(0)89-2180-992459
Web page:

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

in new window

  1. repec:fth:oxesaf:94.10 is not listed on IDEAS
  2. Ritva Reinikka, 1994. "How to identify trade liberalization episodes: an empirical study on Kenya," CSAE Working Paper Series 1994-10, Centre for the Study of African Economies, University of Oxford.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:10396. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.