ISSN: 2225-8329
Open access
The study examines the impact of exchange rate on non-oil export. We used time series data obtained from CBN for a period of 27 years that is 1986 to 2013. Augmented Dickey-Fuller (ADF) test was used for the unit root test and Johansen’s co-integration test was also conducted to establish short and long run relationships between non-oil exports and independent variables. The result shows three co-integrating equations which establish the existence of long run relationship among the variables. Ordinary Least Square statistical technique was used to assess the determinants of non-oil export in Nigeria. The results show that effective exchange rate, money supply, credit to the private sector and economic performance have a significant impact on the growth of non-oil export in the Nigerian economy and appreciation of exchange rate has negative effect on non-oil export which is consistent with the economic theory. Following this, the study recommended among others that monetary authority should ensure exchange rate stability in order to stem inflationary tendencies in Nigeria which have adverse effect on the growth of non-oil export.
Adewuji, (2005). Trade and exchange policy reform and export performance in Nigeria. Nigerian Economic Society (NES) annual conference, 748-771.
Akinlo, A. E., and Adejumo, V. A. (2014). Exchange Rate Volatility and Non-oil Exports in Nigeria: 1986-2008. International Business and Management, 9 (2): 70-79.
Aliyu, S. R. U. (2011). Impact of Oil Price Shock and Exchange Rate Volatility on Economic Growth in Nigeria: An Empirical Investigation, Research Journal of International Studies, 11(3): 103 – 120
Azeez, B. A., Kolapo, K. T., and Ajayi, L. B. (2012). Effect of Exchange Rate Volatility on Macroeconomic Performance in Nigeria. Interdisciplinary Journal of Contemporary Research in Business, 4(1): 149–155.
Chukuigwe, E. C., and Abili, I. D. (2008). An econometric analysis of the impact of monetary and fiscal policies on non-oil exports in Nigeria: 1974-2003, African Economic and Business Review, 6(2): 59-64.
Corden, W. M. (1984). Booming Sector and Dutch Disease Economics: Survey and Consolidation, Oxford Economic Papers 36: 359-380.
Corden, W. M., and Neary, J. P. (1982). Booming Sector and De-Industrialization in a Small Open Economy. Economic Journal 92, 825-848.
Enoma, A., and Isedu, M. (2011). The Impact of Financial Sector Reforms on Non-Oil Export in Nigeria, Journal of Economics, 2(2): 115-120.
Ettah, B. E., Akpan, O. D., and Etim, R. S. (2011). Effects of Price and Exchange Rate Fluctuations on Agricultural Exports in Nigeria, International Journal of Economic Development Research and Investment, 2(1).
Hasan V. (2002). Exchange Rate Volatility in Turkey and Its Effect on Trade Flows, Journal of Economic and Social Research, 4(1).
Johansen, S., and Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration with applications to the demand for money”. Oxford Bulletin of Economics and Statistics 52, 169-210.
Johansen, S. (1988). Statistical analysis of co-integration vectors. Journal of Economic Dynamics and Control, 12, 231-254.
Johansen, S. (1995). Likelihood-based inference in cointegrated vector auto-regressive models, Oxford University Press, USA.
Mordi, N. O. (2006). Challenges of Exchange Rate Volatility in Economic Management in Nigeria. In The Dynamics of Exchange Rate in Nigeria, Central Bank of Nigeria Bullion, 30 (3):17-25.
Ogun, O. (2006). Real Exchange Rate Behaviour and Non-oil export Growth in Nigeria. African Journal of Economic Policy, 11(1).
Oladipupo, A. O., and Ogheneov, O. F. (2011) Impact of Exchange Rate on Balance of Payment in Nigeria. African Research Reviews, 5 (4): 73-88
Omjimite, B. U., and Akpolodje, G. (2010). The Effect of Exchange Rate Volatility on the Imports of ECOWAS Countries. Journal of Social Sciences, 4 (2): 304-346.
Opaluwa, D., Umeh, C., Ameh, A. (2010). The Effect of Exchange Rate Fluctuations on the Nigerian Manufacturing Sector. African Journal of Business Management, 4 (14): 2994-2998.
Shehu, A. A. (2008). Impact of Foreign Exchange Volatility on Imports: A Case of Nigerian Foreign Exchange Market (1987-2008). Proceedings of the 7th International Conference on Innovation & Management. Lagos.
Sorsa, P. (1999). Algeria-The Real Exchange Rate, Export Diversification, and Trade Protection”. Policy Development and Review Department, International Monetary Fund.
Williamson, J. (1994) “Estimates of FEERs,” in Estimating Equilibrium Exchange Rates, ed. by J. Williamson (Washington: Institute for International Economics).
Yaqub, J. O. (2010). Exchange Rate Changes and Output Performance in Nigeria: A Sectorial Analysis. Pakistian Journal of Social Sciences, 7 (5): 12-19.
Yimka, A. S., Olusegun, A. A., and Oluwaseun, J. A. (2014). Foreign Exchange Rate Regimes and Non-Oil Export Performance in Nigeria (1986–2010). International Journal of Business and Behavioral Sciences, 4(2):1-22.
In-Text Citation: (Imoughele & Ismaila, 2015)
To Cite this Article: Imoughele, L. E., & Ismaila, M. (2015). The Impact of Exchange Rate on Nigeria Non-Oil Exports. International Journal of Academic Research in Business and Social Sciences, 5(1), 254–265.
Copyright: © 2015 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode