An Analysis of the Effect of Macroeconomics Variables on Economic Growth in Nigeria
Journal Title: International Journal of Social Science Humanity & Management Research - Year 2024, Vol 3, Issue 12
Abstract
The prime objective of any country in the world is to achieve a steady growth in each macroeconomic variable such as exchange rate, inflation rate, interest rate, money supply, price stability, balance of payment, unemployment rate, foreign direct investment etc. The study the examines the long-run asymmetric effect of macroeconomics variables on economic growth in Nigeria using quartly data from 2000Q1 to 2021Q4. The study employed nonlinear ARDL model. The Zivot-Andrew unit root test indicates that real gross domestic product, interest rate, exchange rate and crude oil price are integrated of order one in other words are stationary at first difference while inflation rate is integrated of order zero in other word it is stationary at level. The results of nonlinear ARDL model show that interest rate has a positive effect on the real gross domestic product in Nigeria. The variable real exchange rate has a negative effect on the real gross domestic product in Nigeria, inflation rate has a negative effect on the real gross domestic product in Nigeria and crude oil price has a positive effect on the real gross domestic product in Nigeria. Therefore, the current study concludes that there exist an asymmetry effect in the long-run of macroeconomics variables such as interest rate, exchange rate, inflation rate, and crude oil price in the Nigerian economy. The study recommends that Nigerian government should endeavor to bring macroeconomics variables such as interest rate, exchange rate, inflation rate and crude oil price under control in order to boast the economic growth by managing interest rate to its lowest level, stabilizing forex market in a way that the Nigerian currency will not depreciate and increase the production of crude oil in order to the demand.
Authors and Affiliations
Adahama Ibrahim Haladum,Ali Salisu,Mahmut Alabbas,
Keywords
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- EP ID EP761686
- DOI 10.58806/ijsshmr.2024.v3i12n06
- Views 16
- Downloads 0
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