Abstract
The study investigated the relationship between Nigeria exchange rate variations and economic growth in Nigeria from 1990 to2024. It considered investment as a mediating variable and combined with Nigeria exchange rate variations with key currencies of USD, BPS, and JPY to unravel true effect on Nigeria economic growth. This is anchored on the argument that exchange rate variations affect investment which in turn contribute to economic growth. Data were sourced from Central Bank of Nigeria. Ex-post facto research design was adopted. Collected data on Nigeria exchange rate per USD, BPS, JPY, capital stock (investment) And real gross domestic product were analysed using ordinary least square technique. The results show that the estimated coefficient (USD=-170.399; BPs=53.683 and JPY= 23982.854) and P-value( USD=0.006; BPS= 0.260 and JPY = 0.000) implying that Nigeria exchange rate variations with USD is statistically significant with negative relationship with real gross domestic product, Nigeria exchange rate variation with BPS is statistically insignificant with positive relationship with real gross domestic and Nigeria exchange rate variation with JPY is statistically significant with positive relationship with real gross domestic product. Taking the model as a whole it was concluded that Nigeria exchange rate variations with the key currencies significantly influence the RGDP within the period of study. It was recommended that Government should pursue serious monetary policy through sterilization and impose trade restrictions on certain goods and services from other countries where the key currencies of USD, BPS and JPY form legal tenders for exchange to ensure positive and significant contribution to economic growth of Nigeria.
TABLE OF CONTENT
Chapter Title Page
Cover page
TITLE PAGE ii
DECLARATION iii
CERTIFICATION iv
DEDICATION v
ACKNOWLEDGEMENTS vi
ABSTRACT vii
TABLE OF CONTENT viii
LIST OF TABLE xi
CHAPTER ONE: INTRODUCTION
background of the study1
statement of the problem2
objective of the study3
research questions4
statement of hypotheses4
scope and limitation of the study5
significance of the study5
organization of the study6
operational definition of key terms6
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Conceptual review 7
2.1.1 Exchange rate 7
2.1.2 Types of exchange rate9
2.1.3 Causes of variation in exchange rates 10
2.1.4 Foreign exchange and foreign exchange Market 11
2.1.5 Economic growth 12
2.1.6 Exchange rate policies in Nigeria 13
2.2 Theoretical framework 14
2.2.1 Balance of payment theory 15
2.2.2 Sterilization theory 16
2.3 Empirical review 16
2.4Gap in the Empirical Literature 24
CHAPTER THREE: METHODOLOGY
3.1 Research design 25
3.2 Population of the study 25
3.3 Source and nature of data 25
3.4 conceptual specification of model 26
3.5 Empirical specification of model 26
3.6 Description and measurement of variable 27
3.7 Method of data analysis 28
3.8 Decision rule 29
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND FINDINGS
4.1 Data presentation 30
4.2 Analysis of empirical results 31
4.3 Test of hypothesis 36
4.4 Discussion of the findings 37
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMATIONS
5.1 Summary of the findings 41
5.2 Conclusions 42
5.3 Recommendations 43
5.4 Contribution to knowledge 43
5.5 Suggestions for further studies44
REFERENCES
APPENDICES
LIST OF TABLES
Table Title Page
2.1 Summary of Empirical Review21
3.1 Summary of Description and measurement of the variables used28
4.1 Data for Regression Analysis30
4.2 Descriptive Statistics results31
4.3 Statitionarity Test Result 33
4.4 Johanson Co-integration Test34
4.5Model Summary35
4.6 Summary of T-calculated and T-tabulated values35