Asymmetric response of cpi inflation to exchange rates in oil-dependent developing economy: the case of Nigeria

Eregha, Perekunah B.

doi:10.1007/s10644-021-09339-3

Cited by 8 publications

(6 citation statements)

References 21 publications

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“…Some drivers of food prices have been reported in extant literature to include heavy reliance on biofuels, conflict, climate variability and extremes, and economic slowdowns and downturns (Mejía and Garcia-Diaz 2018; Food and Agriculture Organization of the United Nations n.d.; Kaur 2021;Okou, Spray, and Unsal 2022). Other studies have found population growth to have put pressure on demand for food and food prices (Barrett 1999;Mizdrak et al 2015), monetary policy (Barth and Ramey 2001;Chowdhury, Hoffmann, and Schabert 2006;Gaiotti and Secchi 2006;Henzel et al 2009;Iddrisu and Alagidede 2021;Eregha 2022;Fernandes 2023), exchange rate (Abbott, Hurt, and Tyner 2008;Aron et al 2014;Nakamura and Zerom 2010;Norazman, Khalid, and Ghani 2018;Okou, Spray, and Unsal 2022), oil prices (Rosegrant 2008;Mitchell 2008;Nazlioglu and Soytas 2012;Davidson et al 2011;Louw 2017;Norazman, Khalid, and Ghani 2018;Bala and Chin 2018;Fasanya and Akinbowale 2019;Lidiema 2020;Agyei et al 2021;Köse and Ünal 2022;Eregha 2022) and international trade (Abbott, Hurt, and Tyner 2008;Giordani, Rocha, and Ruta 2016;Okou, Spray, and Unsal 2022). Literature review of this study will be analysed in two ways: (1) Climate change and food price, and (2) Climate finance and food price in ssa.…”

Section: Theoretical Literaturementioning

confidence: 97%

“…In light of these perspectives, climate finance, as a form of aid, should be expected to reduce or stabilise food prices. empirical literature review Upon careful analysis of the existing literature, it was found that food inflation is influenced by several factors, such as a country's monetary policy, crude oil prices, exchange rate, and climate variability and extremes (Aron et al 2014;Mejía and Garcia-Diaz 2018;Akanni 2020;Kaur 2021;Dalheimer, Herwartz, and Lange 2021;Köse and Ünal 2022;Eregha 2022;Kunawotor et al 2022;Fernandes 2023;Iliyasu, Mamman, and Ahmed 2023). Some drivers of food prices have been reported in extant literature to include heavy reliance on biofuels, conflict, climate variability and extremes, and economic slowdowns and downturns (Mejía and Garcia-Diaz 2018; Food and Agriculture Organization of the United Nations n.d.; Kaur 2021;Okou, Spray, and Unsal 2022).…”

Section: Theoretical Literaturementioning

confidence: 99%

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Is Climate Finance Helping Stabilise Food Prices in Sub-Saharan Africa?

Doku,

Phiri

2023

MGT

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This study explores the potential impact of climate finance (cf) on foodprices in Sub-Saharan Africa (SSA) as climate change continues to createfood scarcity and increase food prices. The study analyses data from43 SSA countries between 2006 and 2018 using a panel fixed effect modelwith Driscoll-Kraay standard errors and methods of moments quantile regressions(MMQR). The findings indicate that countries in SSA that receivemore cf, improve their fight against corruption, have good rainfall patterns,experience reduced extreme temperatures, have depreciated currencies,larger populations and higher GDP growth, reduce food imports, increasedomestic food supply, and demonstrate high governance and socialreadiness are likely to experience stable or reduced food prices. Based onthese results, the study recommends that SSA governments prioritise anticorruptionefforts to earn donor trust and increase CF, ultimately leadingto lower food prices in the sub-region. Further, the findings indicatethat good rainfall patterns reduce food prices: this shows the need for SSAcountries to invest in policies that lead to reliablewater supply as irrigation.

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Section: Theoretical Literaturementioning

confidence: 97%

Section: Theoretical Literaturementioning

confidence: 99%

Is Climate Finance Helping Stabilise Food Prices in Sub-Saharan Africa?

Doku,

Phiri

2023

MGT

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“…Eregha [25] examined the association between domestic prices and fluctuations in parallel and official exchange rates from 1995 Q1 to 2019 Q1. The study employed both linear and nonlinear ARDL methodologies.…”

Section: ) Empirical Evidence From Nigeriamentioning

confidence: 99%

Exchange Rate Pass-Through to Import and Consumer Prices in Nigeria

2024

Journal of Southwest Jiaotong University

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This study investigates exchange rate pass-through (ERPT) to import and consumer prices in Nigeria. The literature about the influence of ERPT on inflation in Nigeria did not consider the initial transmission stage because it primarily focused on the influence exchange rate fluctuations had on consumer prices, while neglecting the influence on import prices. In addition, a good proxy for measuring import prices has not been used, which could facilitate a more comprehensive analysis of the study area. Therefore, this study contributes to knowledge by examining the initial transmission stage of the exchange rate pass through (ERPT) before it passes through consumer prices. The goals of this study were to determine the degree of ERPT to import and consumer prices in Nigeria and examine the discrepancy in the response of import and consumer prices to positive and negative shocks of the exchange rate in Nigeria. The analysis relied on quarterly time series data obtained from the World Development Indicators (WDI) and the Central Bank of Nigeria (CBN), covering the time frame from 2000 Q1 to 2021 Q4. It explains ERPT to import and consumer prices using the CBN Statistical Bulletin's Import Price Index as a suitable proxy for import prices in Nigeria. It uses autoregressive distributed lag (ARDL) and nonlinear ARDL (NARDL) techniques to estimate the ERPT and its influence on consumer and import prices. The research finds an asymmetric and incomplete ERPT to Nigerian import and consumer prices. Additionally, the analysis reveals a direct association between appreciation in the exchange rate and increases in consumer and import prices. The import price of the previous quarter significantly impacts inflation in Nigeria. It also finds an inverse relationship between GDP and inflation, with GDP having a greater impact on consumer prices than the exchange rate in Nigeria. As a result, the research suggests that it would be advantageous for the government to prioritize the implementation of policies that diminish dependence on imported goods. In addition, it recommends that the government give precedence to implementing measures that promote economic expansion.

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Section: Brief Literature Reviewmentioning

confidence: 99%

Untitled

2023

MGT

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To achieve inclusive growth, and poverty and inequality reduction, African countries should enhance labour-intensive agricultural production due to their abundance of natural resources and labour. In this paper, we examine the impact of agriculture on the economic growth of Zimbabwe using the Autoregressive Distributed Lag (ardl) model employing data covering the period 1970 to 2019. The results show that agricultural production has a significant positive impact on economic growth in the short run while showing no impact on economic growth in the long run. Additionally, the study confirms that inflation, government expenditure and gross fixed capital formation have a positive impact on economic growth in both the long run and short run. Although the agricultural sector plays a salient role in the early stages of economic development, it is, however, not able to maintain sustainable economic growth over a long period in Zimbabwe. Additional macro-economic policy levers are required to compliment agricultural production and promote sustainable economic growth.

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Asymmetric response of cpi inflation to exchange rates in oil-dependent developing economy: the case of Nigeria

Cited by 8 publications

References 21 publications

Is Climate Finance Helping Stabilise Food Prices in Sub-Saharan Africa?

Is Climate Finance Helping Stabilise Food Prices in Sub-Saharan Africa?

Exchange Rate Pass-Through to Import and Consumer Prices in Nigeria

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