Exchange Rate and Balance of Payment: An Autoregressive Distributed Lag (Ardl) Econometric Investigation on Nigeria

Odili, Okwuchukwu

doi:10.9790/5933-0462130

Cited by 18 publications

(17 citation statements)

References 13 publications

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“…However, because the influence of the exchange rate on the balance of payment was not significant, this link may not have any economic implications. The findings of this study also agree with those of (Lotfalipour & Bazargan, 2014;Odili, 2014), who found that the exchange rate has no impact on the balance of payment. Mwai (2015) also found a positive relationship between foreign exchange rates and BOP in Kenya.…”

Section: The Influence Of Exchange Rate On the Balance Of Paymentsupporting

confidence: 93%

Assessment of the Determinants of Balance of Payment in Tanzania

Kingia

Muba

2021

East Afr. j. bus. econ.

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The purpose of the study was to assess the determinants of the balance of payment in Tanzania. The nature of this study was quantitative where secondary time series data covering a period of thirty-one years between 1990 and 2020 were collected. The study performed descriptive statistics and diagnostic tests such as normality test, unit root test for stationarity, Pearson’s Correlation matrix to check if there is a multicollinearity problem in the data. The diagnostic tests revealed that the data bring unbiased results, therefore the ordinary least square regression was performed and we found that foreign direct investment and inflation rate have a negative and significant influence on the balance of payment, whereas exchange rate has a positive and insignificant influence on the balance of payment, and the interest rate has an insignificant negative influence on the balance of payment. Finally, we recommend that a country have to introduce relative prices of imports in order to improve the inflows of FDI in order to have a favourable balance of payment in a country like Tanzania. Also, Tanzania's central bank must be cautious in its monetary policy and take some beneficial steps to regulate the money supply. To attract the new internal investor, it must keep an eye on interest rates and charge a low-interest rate.

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Section: The Influence Of Exchange Rate On the Balance Of Paymentsupporting

confidence: 93%

Assessment of the Determinants of Balance of Payment in Tanzania

Kingia

Muba

2021

East Afr. j. bus. econ.

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“…The results of this study also support the twin deficit theory in Turkey. Odili (2014), examines the impact of the exchange rate on the balance of payments in Nigeria, using the annual data, 1971-2012. The results provide evidence that supports positive and statistically significant relationships in the long run as well as positive but statistically insignificant in the short term between the balance of payments and the exchange rate.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

Factors Affecting Indonesia’s Current Account, 1985-2016

Taqwa¹,

Palampanga²,

Suparman³

et al. 2018

RJOAS

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This study aims to test the three hypotheses include the government budget gap, and savings-investment gap that will impact on the current account balance. The government budget deficit will have a significant impact on the current account balance. Similarly, the deficit in savings-investment will have an impact on the current account deficit. Another variable that may affect the current account balance is the exchange rate of the currency. Depreciation of the domestic currency, for example, will be able to affect export volume increase and import volume decrease. The opposite effect on export and import volume will occur if the currency of a country appreciates. The purpose of this research is to know the effect of government budget gap, saving-investment gap, and rupiah exchange rate on current account balance in Indonesia, using annual data from period 1985-2016. This research applies the multiple linear regression approach.The results of this study, both of test (F-test) and partially (t-test), show that the government budget gap, saving-investment gap, and rupiah exchange rate had a positive and significant impact on Indonesia's current account balance during the period 1985-2016. KEY WORDSGovernment budget gap, saving-investment gap, exchange rate, current account balance.

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“…Consequently, nations in the pursuit of macroeconomic goals of healthy external balances as reflected in their BOP find it imperative to enunciate an exchange rate policy (Abdullahi et al 2017). Exchange rate, therefore, is an essential macroeconomic variable that aids speculators on the ideal approach to find some harmony between their trading partners (Odili 2014). The political, economic, social, and technological forces have a remarkable impact on Nigerian international trade and a resultant effect on the balance of payment.…”

Section: Introductionmentioning

confidence: 99%

Challenges in English Language Teaching and Learning in the 21st Century

Khubchandani¹

2019

JSS

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Environmental factors' influence on the exchange of goods and services across countries cannot be quantified. The study examined the effect of environmental factors on international trade by viewing of political, economic, social, and technological forces on global trade flow in Nigeria. The uniqueness of the study was the concentration on the trend of political factors such as tariff and government expenditure, economic factors such as exchange rate and inflation rate, social factors such as population rate and education level and technological elements such as electricity consumption and their impact on international trade in Nigerian economy from the period of 1997 to 2017. This quantitative method was adopted using secondary data and Regression Analysis, and Granger Causality Walds Test was used to explore the relationship among identifiable. At a significance level of 0.05, the F-statistics is 8.18 while the p-value of the F-statistics is 0.0002, which is less than 0.05. This implies that the combination of the independent variables significantly influences the balance of payment.

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Exchange Rate and Balance of Payment: An Autoregressive Distributed Lag (Ardl) Econometric Investigation on Nigeria

Cited by 18 publications

References 13 publications

Assessment of the Determinants of Balance of Payment in Tanzania

Assessment of the Determinants of Balance of Payment in Tanzania

Factors Affecting Indonesia’s Current Account, 1985-2016

Challenges in English Language Teaching and Learning in the 21st Century

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