Economics, Econometrics and Finance
8 years ago

Nigeria's Exchange Rate Stability with Trading Partners Supports Economic Growth.

2 views
Economics bulletin
Are Bilateral Real Exchange Rates Stationary? Empirical Evidence from Nigeria
Olalekan Bashir Aworinde

Paper Summary

The study looked at Nigeria's exchange rate with 28 other countries from 1960 to 2011. Different tests were used to see if the exchange rates were stable. Results showed that Nigeria's exchange rate with 26 out of 28 countries stayed the same over time, supporting the idea of purchasing power parity (PPP). Another test also supported the PPP idea, but one test did not. Overall, the study found strong evidence that Nigeria's exchange rate follows the PPP theory when considering structural breaks.

Related papers

Economics, Econometrics and Finance
4 years ago

Panel unit root test rejects long-run PPP for ASEAN countries against Yuan.

Macroeconomic Analysis
Infrastructure Impact
Public Finance
3 views
Economics, Econometrics and Finance
4 years ago

Panel methods for testing PPP may lead to serious economic miscalculations.

Infrastructure Impact
Macroeconomic Analysis
Fiscal Policy
1 view
Economics, Econometrics and Finance
4 years ago

New Study Challenges Validity of Purchasing Power Parity, Impacting Global Economies

Economic Growth
Real Options
Macroeconomic Analysis
1 view