An Analysis of the Effect of Macroeconomics Variables on Economic Growth in Nigeria
Journal Title: International Journal of Social Science Humanity & Management Research - Year 2024, Vol 3, Issue 12
Abstract
The prime objective of any country in the world is to achieve a steady growth in each macroeconomic variable such as exchange rate, inflation rate, interest rate, money supply, price stability, balance of payment, unemployment rate, foreign direct investment etc. The study the examines the long-run asymmetric effect of macroeconomics variables on economic growth in Nigeria using quartly data from 2000Q1 to 2021Q4. The study employed nonlinear ARDL model. The Zivot-Andrew unit root test indicates that real gross domestic product, interest rate, exchange rate and crude oil price are integrated of order one in other words are stationary at first difference while inflation rate is integrated of order zero in other word it is stationary at level. The results of nonlinear ARDL model show that interest rate has a positive effect on the real gross domestic product in Nigeria. The variable real exchange rate has a negative effect on the real gross domestic product in Nigeria, inflation rate has a negative effect on the real gross domestic product in Nigeria and crude oil price has a positive effect on the real gross domestic product in Nigeria. Therefore, the current study concludes that there exist an asymmetry effect in the long-run of macroeconomics variables such as interest rate, exchange rate, inflation rate, and crude oil price in the Nigerian economy. The study recommends that Nigerian government should endeavor to bring macroeconomics variables such as interest rate, exchange rate, inflation rate and crude oil price under control in order to boast the economic growth by managing interest rate to its lowest level, stabilizing forex market in a way that the Nigerian currency will not depreciate and increase the production of crude oil in order to the demand.
Authors and Affiliations
Adahama Ibrahim Haladum,Ali Salisu,Mahmut Alabbas,
Keywords
Related Articles
- EP ID EP761686
- DOI 10.58806/ijsshmr.2024.v3i12n06
- Views 15
- Downloads 0
Research Gaps in Supply Chain Risk Management: A Systematic Literature Review
Despite growth of research publications, various meaning of knowledge and interpretations of supply chain risk management (SCRM) have evolved and considerable differences between its theory and practice, hence necessitat...
The Urgency of Ta'dib in Tahfiẓ Al-Qur'an at Smp Tahfiẓ Ma'had Yasin Kudus (A Review of the Educational Thought of M. Naquib Al-Attas)
This research intends to reveal the urgency of the practice of ta'dib in SMP (Junior High School) Tahfiẓ al-Qur'an at Tahfiẓ Ma'had YASIN Kudus. The type of study used in this paper is qualitative; the author conducts th...
https://ijsshmr.com/v2i6/15.php
This study attempted to find out the significant difference between the basic mathematical skills of grade 5 learners before and after the implementation of innovative board game and the social learning after the impleme...
The Problem of Human Capital and Economic Growth in the Democratic Republic of the Congo Through the Analysis of Statistical Data
This paper aims to detect the interactions between human capital in its educational dimension and economic growth in the Democratic Republic of Congo over a period of thirty-one years, from 1980 to 2011, using a vector a...
The Relevance of Fazlur Rahman's Concept of Education to the Independent Learning Curriculum
Islamic education in developing countries like Indonesia also incorporates elements influenced by Western education. It seems that a large number of educated Muslims rely on Western intellectuals as a foundation to build...