Analysis of Inflation and Its Effect on Economic Growth in Nigeria
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 1
Abstract
This paper examined the effect of inflation on economic growth in Nigeria utilizing annualized data covering the period 1986 – 2015, which were obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin of various issues. This study employed ex-post research design because the variables were based on events that had already taken place, which the researcher could neither control nor manipulate. Some preliminary tests were performed to ensure data stationarity, and also ascertain how well the series were distributed. While Augmented Dickey-Fuller (ADF) was adopted for the former, descriptive statistics explained the latter. Ordinary Least Square (OLS) technique was used to estimate the variables. Real Gross Domestic Product (RGDP) formed the dependent variable, Inflation Rate (INFR), Interest Rate (Interest Rate) and Exchange Rate (EXCHR) made up the independent variables. Statistical outcomes were interpreted based on a 5 percent level of significance. The regression results indicated that INFR had a positive and non-significant effect on economic growth (measured by RGDP) in Nigeria for the period studied. The study recommended that government should adopt tight monetary policy measures to stabilize tide of inflationary pressures on our economy. It also recommended that political leaders should minimize unjustified public spending and promote fiscal prudence.
Authors and Affiliations
Anidiobu G. A. , Okolie P. I. P. , Oleka D. C. Ph. D
Keywords
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- EP ID EP414515
- DOI 10.9790/5933-0901042836.
- Views 283
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