Exchange rate volatility and non-oil exports in Nigeria:  An empirical investigation

Akanbi, Sa’ad Babatunde; Alagbe, Halimah Adedayo; Yusuf, Hammed Agboola; Oluwaseyi, Musibau Hammed

doi:10.24191/jeeir.v5i2.8800

Cited by 4 publications

(6 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The findings show that all the independent variables except the total government expenditure are not in line with the a priori expectations, which agree with the work of Oyelami and Ajeigbe [11] and Akanbi et al [17]. The R-square results showed that 99% of the changes that had taken place in the dependent variable were explained by the changes in the independent variables.…”

Section: Long Run Resultssupporting

confidence: 79%

“…Akanbi, Alagbeb, Yusuf, and Oluwaseyi [17] used the ARCH model and its various extensions (GARCH, TGARCH, and EGARCH), including the Error Correction Model, to examine the impact of exchange rate volatility on non-oil exports. The result of the analysis revealed that exchange rate volatility has a significant negative impact on non-oil export performance in Nigeria.…”

Section: Empirical Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Nigeria’s Non-Oil Sector and its Impact on Exchange Rate Volatility (1981-2021)

Nwolisa,

Ugoji,

Aiyeku

et al. 2023

JEMT

View full text Add to dashboard Cite

The study investigates the impact of non-oil exports on exchange rate volatility in Nigeria using 40 years of time series data. The study makes use of an autoregressive distributed lagged model as the model for the data estimation. The variables used were found to be stationary at a mixture of level and first difference. The study found that non-oil exports have a negative impact on the exchange rate volatility in Nigeria. A 1% increase in non-oil exports will lead to a 0.64% reduction in exchange rate volatility. This implies that the less volatile the exchange rate becomes, the more interest there is in non-oil exports. This study recommends that it is high time Nigeria as a country diversified its economy and focused on massive investments into other sectors of the economy such as Agriculture, Manufacturing, Mining, Art, and entertainment to increase non-oil exports and prevent overreliance on crude oil exports as the only source of foreign exchange earnings. When we diversify the economy, we produce more, become less reliant on imports, and the exchange rate becomes more stable as a result.

show abstract

Section: Long Run Resultssupporting

confidence: 79%

Section: Empirical Reviewmentioning

confidence: 99%

Nigeria’s Non-Oil Sector and its Impact on Exchange Rate Volatility (1981-2021)

Nwolisa,

Ugoji,

Aiyeku

et al. 2023

JEMT

View full text Add to dashboard Cite

show abstract

“…For Nigeria's oil exports to Canada, Italy, Brazil, and France, Yunusa (2020) observed the same negative effect of exchange rate volatility on exports. In the case of non-oil and gas sector exports for the period 1986-2014, Akanbi et al (2017) found volatility's negative effect on exports. Sugiharti et al (2020) also found similar results in several primary commodity exports from Indonesia to its main trading partners.…”

Section: Previous Studymentioning

confidence: 92%

“…Good news means that information will assert a positive influence on increasing the value of volatility, for instance, an unexpected appreciation in the currency value will increase volatility, while bad news means that information will have a negative impact, for example, an unexpected depreciation in currency values will increase volatility (Nishimura and Hirayama 2013). In addition, Akanbi et al (2017) used the threshold GARCH (TGARCH) method, which is introduced by (Glosten et al 1993).…”

Section: Previous Studymentioning

confidence: 99%

The Volatility of Rupiah Exchange Rate Impact on Main Commodity Exports to the OIC Member States

et al. 2022

View full text Add to dashboard Cite

This study analysed the impact of the volatility of the rupiah exchange rate on four main commodities exported from Indonesia to six member countries of the Organisation of the Islamic Cooperation (OIC) (Saudi Arabia, Malaysia, Pakistan, United Arab Emirates, Turkey, and Bangladesh). The study employed monthly data spanning from January 2007 to December 2019 and the EGARCH method to obtain exchange rate volatility, while the ARDL method was used to model both the short-run and long-run impact of exchange rate and its volatility on exports. In the short term, findings revealed that exchange rate volatility has a significant negative effect on five main commodity exports to OIC countries, whereas, in the long-term, volatility of the exchange rate negatively affects twelve main commodity exports to OIC countries. Our results further imply that most of Indonesia’s exporters to six OIC Member countries are risk-averse.

show abstract

“…Similarly, Akanbi, Alagbeb, Yusuf, and Oluwaseyi (2017) examined the impact of exchange rate volatility using the ARCH model and its different augmentations (GARCH, TGARCH, and EGARCH) utilizing quarterly exchange rate series from 1986-Q1 to 2014-Q4. Error Correction Model (ECM) was employed to determine the exchange rate volatility on non-oil exports.…”

Section: Brief Review Of Literaturementioning

confidence: 99%

Non-Oil Export and Exchange Rate Nexus in Nigeria: Another Empirical Verification

Orji,

Abubakar,

Ogbuabor

et al. 2021

Growth

View full text Add to dashboard Cite

This study examined the nexus between Exchange Rate and Non-Oil Export in Nigeria using time series data from 1985 to 2018. Secondary data were sourced from the Central Bank of Nigeria (CBN), National Bureau of Statistics (NBS) and World Bank Development Indicators (WDI). The study adopted Autoregressive Distributed Lag (ARDL) model and it was fitted with Seven variables; namely, Non-oil Export (NOE), Exchange Rate (EXR), Credit to Private Sector (CPS), Trade Openness (OPN), Inflation (INF), Interest Rate (INT) and Foreign Direct Investment (FDI). The results showed that the exchange rate has a positive and significant impact on non-oil export in Nigeria. Therefore, the study recommended that the Government should encourage international trade to boost non-oil export and increase foreign exchange earnings. Also, there is a need for the government to improve the financial institutions to make investment funds available. Lastly, there is a need to revisit the export-oriented policy to ensure that the non-oil sector is well catered for.

show abstract

Exchange rate volatility and non-oil exports in Nigeria: An empirical investigation

Cited by 4 publications

References 0 publications

Nigeria’s Non-Oil Sector and its Impact on Exchange Rate Volatility (1981-2021)

Nigeria’s Non-Oil Sector and its Impact on Exchange Rate Volatility (1981-2021)

The Volatility of Rupiah Exchange Rate Impact on Main Commodity Exports to the OIC Member States

Non-Oil Export and Exchange Rate Nexus in Nigeria: Another Empirical Verification

Contact Info

Product

Resources

About