Exchange Rate Fluctuations and Economic Growth in Nigeria: An Empirical Analysis Using ARDL Approach
Exchange Rate Fluctuations and Economic Growth in Nigeria: An Empirical Analysis Using ARDL Approach
Author(s): Iheanyichukwu Emmanuel Nkwa, Idris Ndakene Abubakar, Joachin Chetachi Uchegbulam, Ezinne Thelma Anike, Olusola Michael Akinmoyewa, Aishatu Sule AbuSubject(s): National Economy, Economic history, Economic policy, Developing nations, Political economy, Financial Markets
Published by: Altezoro, s. r. o. & Dialog
Keywords: exchange rate; economic growth; Nigeria; ARDL; cointegration; monetary policy; inflation; financial stability;
Summary/Abstract: The study examines the relationship between exchange rate volatility and economic growth in Nigeria from 1990 to 2023. We employ the Autoregressive Distributed Lag (ARDL) method to investigate the cointegration between exchange rate volatility, interest rate, inflation, money supply and the Real Gross Domestic Product (RGDP). The findings suggest that exchange rates have a positive influence on economic growth, whereas interest rates, inflation, and the money supply have a negative impact in the long term. The error correction mechanism reveals a 9% annual rate of adjustment to long-run equilibrium. Our results suggest that stabilising exchange rates is vital to sustainable economic growth in Nigeria, and this is a consequence of why coordinated macroeconomic policies are essential.
Journal: Traektoriâ Nauki
- Issue Year: 11/2025
- Issue No: 08
- Page Range: 1040-1050
- Page Count: 11
- Language: English
