Effects of Global Oil Price on Exchange Rate, Trade Balance, and Reserves in Nigeria: A Frequency Domain Causality Approach

Olayungbo, David Oluseun

doi:10.3390/jrfm12010043

Cited by 26 publications

(15 citation statements)

References 33 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Similarly, it was discovered that oil revenue has positive and non-statistical significant influence on foreign reserves in Nigeria. This result is similar to Bankole and Shuaibu (2013) and Olayungbo (2019), where their study also discovered a relationship between oil revenue and foreign reserves but the relationship is statistically insignificant. Lastly, total debt has a positive and statistically non-significant influence on foreign reserves.…”

Section: Discussionsupporting

confidence: 88%

“…The outcome of this results is similar to Asagunla and Agbede (2018) who discovered oil revenue to be statistical insignificant in relation to economic growth. Similarly, Olayungbo (2019) in his study found out that, there is a relationship between oil price revenue and foreign reserves but the relationship is statistically insignificant. Also, Bankole and Shuaibu (2013) discovered only a marginal or insignificant impact of oil revenue on foreign reserves.…”

Section: Regression Analysismentioning

confidence: 88%

“…And suggested a government should come up with policies that will limit foreign travels on medical vocation for government official and the presidency in Nigeria. Olayungbo (2019) investigated the Granger causality effects of oil price on the exchange rate and foreign reserves in Nigeria from 1981 to 2018. It used non-stationary of variables and discovered cointegration long-run relationship to exist on oil price and foreign reserves.…”

Section: External Reservementioning

confidence: 99%

See 2 more Smart Citations

An investigation of the link between indirect tax, oil receipt, debt on foreign reserves in Nigeria

Kaka¹,

Ado

2020

JCA

View full text Add to dashboard Cite

The main objective of the study was to investigate the influence of indirect tax, direct tax, oil revenue, total debt on foreign reserves in Nigeria from 1980 to 2019. Ex post factor research design was adopted in this research and data was analyzed with the aid of Ordinary Least Square multi linear regression technique. The study found out that, there is a negative and statistically significant influence of indirect tax and direct tax on foreign reserves in Nigeria. Similarly, it was discovered that oil revenue and total debt has positive and non-statistical significant influence on foreign reserves. The study concluded that there is an influence of oil revenue and total debt on foreign reserves, as well as no influence of indirect tax and direct tax on foreign reserves. In addition, the lack of influence of indirect tax and direct tax shows that government has not being taking advantage of its taxation to generate enough revenue to meet its expenditures, as well as boost foreign reserves. And suggested that government should not depend mainly on oil revenue to meet expenditure and sustain its foreign reserves, but should try as much as possible to diversify the economy towards the creation, encouragement and sustenance of small scale and medium industries, and the development and extraction of non-oil mineral resources for export to boost its foreign reserves. Lastly, government should enhance its revenue generation in taxes to meet its expenditures to give room for the revenue generated through crude oil to increase foreign reserves.

show abstract

Section: Discussionsupporting

confidence: 88%

Section: Regression Analysismentioning

confidence: 88%

Section: External Reservementioning

confidence: 99%

See 1 more Smart Citation

An investigation of the link between indirect tax, oil receipt, debt on foreign reserves in Nigeria

Kaka¹,

Ado

2020

JCA

View full text Add to dashboard Cite

show abstract

“…Many studies on the nexus between oil price and exchange rate in Nigeria employed traditional methods of analysis, such as OLS, Co-integration, Vector autoregressive and autoregressive distributed lag method (Ademola and David 2011 ; Umoru et al 2018 ; Bankole and Shuaibu 2013 ; Olanipekun 2016 ; Olayungbo 2019 ). However, the relationship might not necessarily be linear.…”

Section: Introductionmentioning

confidence: 99%

Shocks and volatility transmission between oil price and Nigeria’s exchange rate

Agya¹,

Samuel²,

Amadi³

2022

SN Bus Econ

View full text Add to dashboard Cite

The study examined shock and volatility transmission between oil price and exchange rate markets using daily data covering the period from 23rd October 2009 to 30th November 2020. The contributions of the paper include (i) implementation of VAR-AGARCH model to capture spillover effect of shock and volatility; (ii) examining the nature of shock impact in oil price and exchange rate market; (iii) adopting of two measured of oil price (WTI and Brent); (iv) employing two measures of the exchange rate (USD/Naira and effective/Naira). The study revealed that past own shocks and volatilities significantly contribute to current volatilities in exchange rate and oil price markets. Also, there is bidirectional shock and volatility spillover between the exchange rate (USD/Naira and effective/Naira) and WTI oil price markets. There were bidirectional shock and volatility spillover between USD/Naira and Brent oil price and unidirectional shock and volatility from Brent oil price to effective exchange rate market. We found asymmetric shocks impacting exchange rates and WTI oil price while symmetric shock was observed in Brent oil price. Including innovation in oil price is essential in exchange rate policy formulation and modelling exchange rate shock and volatility.

show abstract

“…Örneğin; Gronwald (2008) Almanya için, Yanfeng (2019) Japonya için, Albulescu vd. (2017) Romanya için ve Olayungbo (2019), Nijerya için petrol fiyatları ile makroekonomik değişkenler arasındaki ilişki frekans alanında nedensellik testi ile araştırmıştır.…”

Section: Literatürunclassified

Petrol Fiyatları ve Enflasyon Arasında Frekans Alanında Asimetrik Nedensellik Analizi: BRICS-T Ülkeleri Üzerine Bir Uygulama

Çalişkan¹,

Kantarcı²,

Çevik³

2021

Gaziantep University Journal of Social Sciences

View full text Add to dashboard Cite

Petrol ürünlerinin yalnızca nihai tüketim malı olarak değil, birçok ekonomik faaliyette girdi olarak kullanılmaktadır. Bu kapsamda petrol fiyatlarındaki değişmeler ve ekonomi üzerindeki etkileri bu konuda araştırmayı gerekli kılmaktadır. Petrol fiyatlarındaki değişimler hem ithalatçı hem de ihracatçı ülkeler için önemli bir göstergedir. Birçok makroekonomik gösterge petrol fiyat şoklarından çeşitli biçimlerde etkilenmektedir. Bu çalışmada ise küresel ekonomiler içerisinde hızla büyüdüğü bilinen BRICS-T ülkeleri (Brezilya, Rusya, Hindistan, Çin, Güney Afrika ve Türkiye) için petrol fiyatları ile enflasyon arasındaki nedensellik ilişkisi araştırılmıştır. Söz konusu ülkeler hem net petrol ihracatçısı hem de ithalatçı olarak dünyada önemli bir konuma sahiptir. Özellikle ithalatçı konumdaki ülkeler bağlamında petrol fiyatlarındaki değişim, enflasyon oranının belirleyici bir unsuru olmaktadır. Petrol fiyatlarındaki nispi artışların enflasyonu tetikleyebilmesi için belirli bir sürece ihtiyacı bulunmaktadır. Petrol fiyatlarındaki artışlar, girdi maliyetlerini arttırarak mal ve hizmet fiyatlarının yükselmesine sebep olarak enflasyon artacaktır. Dolayısıyla bir kalemdeki nispi artış, petrolün kullanıldığı birçok kalemdeki fiyat artışıyla enflasyonu etkilemeyebilmektedir. Bu çalışmada ilgili değişkenler arasındaki nedensellik ilişkisi Breitung ve Candelon (2006) tarafından önerilen frekans alanındaki nedensellik testi ile incelenmiştir. Ayrıca pozitif ve negatif petrol fiyat şoklarının enflasyon üzerindeki etkisini belirlemek amacıyla asimetrik nedensellik testi yapılmıştır. Analiz sonuçları petrol fiyatları ile enflasyon arasındaki nedensellik ilişkisinin ülkelere göre farklılaştığını göstermektedir.

show abstract

Effects of Global Oil Price on Exchange Rate, Trade Balance, and Reserves in Nigeria: A Frequency Domain Causality Approach

Cited by 26 publications

References 33 publications

An investigation of the link between indirect tax, oil receipt, debt on foreign reserves in Nigeria

An investigation of the link between indirect tax, oil receipt, debt on foreign reserves in Nigeria

Shocks and volatility transmission between oil price and Nigeria’s exchange rate

Petrol Fiyatları ve Enflasyon Arasında Frekans Alanında Asimetrik Nedensellik Analizi: BRICS-T Ülkeleri Üzerine Bir Uygulama

Contact Info

Product

Resources

About