ABSTRACT
Economic growth characterizes the quantitative changes that occur in economic variables and attributed to overall increase in production per capital. This study examined the economic impact of exchange rate, foreign direct investment, inflation rate and the trade balance on Nigeria GDP over the period of 1970-2022. The dynamic causal association among the selected macroeconomic variables and economic growth in Nigeria was evaluated via the implementation of vector Autoregression procedures and impulse response functions. The VAR estimates and the impulse response shows that the response of GDP to inflation and exchange rates is positive while the response of GDP to a one period shock to the trade balance yields a marginal negative depreciation. In essence, this study not only contributes to the academic understanding of economic dynamics but also offers practical implications for policymakers, economists, and stakeholders by unraveling the intricate relationships governing the macroeconomic landscape of the examined period. The results of the work suggest that to promote stable and sustainable economic growth, policy makers should lay more emphasis on encouraging stable and reasonable exchange rate By incorporating these recommendations, stakeholders can leverage the study's insights to navigate the complexities of the economic landscape, fostering sustainable development and resilience in the face of changing economic conditions.
Temitope, A. (2024). The Relevance of Vector Autoregressive Process Causality and Impulse-Response Analysis in Analysis Effect of Some Micro Economic Variables on Nigeria Economic Growth. Afribary. Retrieved from https://afribary.com/works/ayandeko-project-work
Temitope, Ayandeko "The Relevance of Vector Autoregressive Process Causality and Impulse-Response Analysis in Analysis Effect of Some Micro Economic Variables on Nigeria Economic Growth" Afribary. Afribary, 13 Dec. 2024, https://afribary.com/works/ayandeko-project-work. Accessed 22 Dec. 2024.
Temitope, Ayandeko . "The Relevance of Vector Autoregressive Process Causality and Impulse-Response Analysis in Analysis Effect of Some Micro Economic Variables on Nigeria Economic Growth". Afribary, Afribary, 13 Dec. 2024. Web. 22 Dec. 2024. < https://afribary.com/works/ayandeko-project-work >.
Temitope, Ayandeko . "The Relevance of Vector Autoregressive Process Causality and Impulse-Response Analysis in Analysis Effect of Some Micro Economic Variables on Nigeria Economic Growth" Afribary (2024). Accessed December 22, 2024. https://afribary.com/works/ayandeko-project-work