Currency Devaluation and Nigerian Economic Growth (2000 - 2015)

Celestine Sunday Okaro

doi:10.12816/0040235

Article Details

Currency Devaluation and Nigerian Economic Growth (2000 - 2015)

Authors:

Celestine Sunday Okaro

Publisher:

Zainab Arabian Research Society for Multidisciplinary Issues ( ZARSMI )

Main Topics:

Economics and Finance

Journal:

NG-Journal of Social Development 2017 Vol.6 Issue 1, pp.25-37

Document Type:

Article

Publication Date:

2/2017

Document Language:

English

Document ID (Org No.):

107823

Frequency:

Tri-Annual

eISSN:

01895958

pISSN:

01895958

DOI:

10.12816/0040235

Descriptors:

Abstract:

 This paper investigated the effect of currency devaluation on the economic growth of Nigeria. Specific objectives of the study were; to examine the relationship between currency devaluation and the following variables, the real gross domestic product, Nigerian external debt, and private domestic investment in Nigeria. This was achieved through a review of related literature and a test of hypothesis. This study relied on time series data generated for a period of 16years, from 2000-2015. The Ordinary Least Square (OLS) regression method and the computer software application E-views 8.0 were used for the analysis. The result of the analysis which is in line with the a priori expectation shows that:there is a significant relationship between Currency devaluation and real GDP in Nigeria; there is a significant relationship between Currency devaluation and external debt in Nigeria and there is no significant relationship between Currency devaluation and private domestic investment in Nigeria. Thus currency devaluation reduces importation encourages exportation and increases interest rate. Inflation and unemployment are the side effects of devaluation in the short run. It is recommended that discretionary policies, such as combination of monetary and fiscal measures should be utilized to curb the associated increase in inflation; while currency devaluation should be the last measure to be taken by the Nigerian government to bring the country out of recession.

Article Details

Currency Devaluation and Nigerian Economic Growth (2000 - 2015)

Authors:

Celestine Sunday Okaro

Publisher:

Zainab Arabian Research Society for Multidisciplinary Issues ( ZARSMI )

Main Topics:

Economics and Finance

Journal:

NG-Journal of Social Development 2017 Vol.6 Issue 1, pp.25-37

Document Type:

Article

Publication Date:

2/2017

Document Language:

English

Document ID (Org No.):

107823

Frequency:

Tri-Annual

eISSN:

01895958

pISSN:

01895958

DOI:

10.12816/0040235

Descriptors:

DEVALUATION

MONETARY POLICY

ECONOMIC GROWTH

GROSS DOMESTIC PRODUCT

NIGERIA

TWENTY-FIRST CENTURY

Issues

Article Details

Currency Devaluation and Nigerian Economic Growth (2000 - 2015)

Authors: Celestine Sunday Okaro

Publisher: Zainab Arabian Research Society for Multidisciplinary Issues ( ZARSMI )

Main Topics: Economics and Finance

Journal: NG-Journal of Social Development 2017 Vol.6 Issue 1, pp.25-37

Document Type: Article

Publication Date: 2/2017

Document Language: English

Document ID (Org No.): 107823

Frequency: Tri-Annual

eISSN: 01895958

pISSN: 01895958

DOI: 10.12816/0040235

Descriptors:

DEVALUATION

MONETARY POLICY

ECONOMIC GROWTH

GROSS DOMESTIC PRODUCT

NIGERIA

TWENTY-FIRST CENTURY

Issues

Authors:

Celestine Sunday Okaro

Publisher:

Zainab Arabian Research Society for Multidisciplinary Issues ( ZARSMI )

Main Topics:

Economics and Finance

Journal:

NG-Journal of Social Development 2017 Vol.6 Issue 1, pp.25-37

Document Type:

Article

Publication Date:

2/2017

Document Language:

English

Document ID (Org No.):

107823

Frequency:

Tri-Annual

eISSN:

01895958

pISSN:

01895958

DOI:

10.12816/0040235