Foreign Exchange Rate Volatility Determinants and Their Relationship with Non-Oil Export in Nigeria | Chapter 7 | An Overview on Business, Management and Economics Research Vol. 1

This affiliate evaluated price of currency if exchanged volatility determinants and their friendship with Non-Oil Export in Nigeria. Effect of    Exchange rate airiness has been controversial practical issues on this premise, the driving forces (cause) of exchange rate airiness was investigated. The study collected occasion series dossier covering 36 years (1982-2017) from CBN, 2019.  The dataset calm from secondary beginning was analysed using descriptive enumerations as well as co-unification analysis (Autoregressive Distributed Lag). The study likewise used Autoregressive Conditional Heteroscedasticity (ARCH) and Generalised Autoregressive Conditional Heteroscedasticity (GARCH) model to determine the closeness of volatility in the rate of exchange. Augmented Dickey Fuller (ADF) and Phillips Perron Test (PPT) were used to test the unit roots and decide the non-stationarity among the variables. Autoregressive Distributed Lag and bound test was used to decide long run co-unification among the dependent and free variables. The volatility of rate of exchange on the non-oil export in Nigeria was driven through ARCH and GARCH 1(1) model. The results derived from the analysed dossier showed that foreign exchange rate, sum charged for use of money, inflation and convertibility volume have beneficial relationship with non-lubricate export, still, GDP, M2 and Government expenditure has negative coefficient and statistically pointless.  Exchange rate and inflation have, individually, the most changeable effects on non-oil smuggle in Nigeria, according to the ARCH (1)1 and ARDL models. The management should pursue a rebounding rate of exchange stability plan that will encourages non-oil exports.

Author(s) Details:

Dele Jacob Ojomolade,
Department of Accounting and Finance Caleb University, Imota- Lagos, Nigeria.

Adewale Joshua Adejuwon,
Lead City University, Ibadan, Nigeria.

Akinjide Akinlabi,
Department of Accounting and Finance Caleb University, Imota- Lagos, Nigeria.

Please see the link here: https://stm.bookpi.org/AOBMER-V1/article/view/11727