Oil price, trade openness, current account balances and the official exchange rate in Nigeria

Longe, Adedayo Emmanuel; Muhammad, Shehu; Ajayi, Patricia Iyore; Omitogun, Olawunmi

doi:10.1111/opec.12164

Cited by 5 publications

(3 citation statements)

References 53 publications

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“…This work follows the model design by the Adedayo Emmanuel Longe et al, (2019), which is based on the Babatunde (2015), incorporated with the variables such as GDP per capita (GDPPC), trade openness (Trade), oil price (OP), inflation (Inf), financial development (FD), foreign direct investment (FDI) and the gross fixed capital formation (GFCF). The model is expressed such as Although ADF technique resolve the issue of any level's autocorrelation while considering the lagged value on the independent side.…”

Section: Methodsmentioning

confidence: 99%

Does Oil Price and Trade Openness Nexus along with Foreign Direct Investment have Influence on Economic Growth in Thailand

Rahman¹,

Atta²,

Ahmad³

et al. 2020

IMRJ

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The objective of this research is to analyze the conceivable cointegration and direction of causality among the oil price, trade openness, foreign direct investment and the growth rate in Thailand, using the time series data from 1974 to 2018. In addition to these variables’ fiscal development and inflation are also employed to observe the influence of financial openness on economic growth. Johansen cointegration test is utilized to detect long-run relationship incorporated with the vector error correction for the short-term association. Further, granger causality is utilized to determine the direction of causality among the contending variables. The outcomes of Johansen and vector error confirms the short and long-term affiliation among variables in Thailand. The coefficient of VECM (Wald test) detect the cumulative influence on the growth rate. The estimations of granger causality affirmed that oil price, inflation, fiscal development via trade, granger cause the growth rate and the fiscal development and foreign direct investment granger causes the growth rate in bi-direction and uni-direction, respectively. The study suggests, based on the impulse response function (under the consideration of the behavior of variables) government should liberalize trade openness as it fortifies the position of Thailand in the neighbored.

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Section: Methodsmentioning

confidence: 99%

Does Oil Price and Trade Openness Nexus along with Foreign Direct Investment have Influence on Economic Growth in Thailand

Rahman¹,

Atta²,

Ahmad³

et al. 2020

IMRJ

View full text Add to dashboard Cite

show abstract

“…Hasil tersebut mengindikasikan bahwa variabel keterbukaan perdagangan mempunyai pengaruh signifikan yang bersifat negatif pada nilai tukar. Hal ini sesuai dengan hasil penelitian dari Raza (2017), Sharif (2017), Longe et al (2019), Vogiazas et al (2019), dan Kilicarslan (2018). Semakin tinggi nilai indikator keterbukaan perdagangan suatu negara mengindikasikan semakin besarnya frekuensi transaksi ekspor dan impor negara tersebut.…”

Section: Hasil Uji Tunclassified

Pengaruh Faktor Ekonomi Makro, Kestabilan Politik dan Harga Minyak Dunia pada Nilai Tukar Rupiah terhadap Dolar Amerika Serikat

Karimah,

Laulita

2023

JMP

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<em>The exchange rate value of the rupiah against the US dollar fluctuates and tends to depreciate throughout the year. So it is very important to analyze the factors that influence the exchange rates to maintain its stability. The relationship between several macroeconomic factors such as inflation, interest rates, GDP, and trade openness as well as political stability factors and world oil prices on exchange rates are the main topics of discussion in this study. Monthly data in time series 2010-2020, processed using the Eviews 12 and tested using the multiple linear regression method. There is a significant positive effect between interest rates, GDP, and world oil prices for the type of WTI on the exchange rates. Meanwhile, trade openness, political stability, and world oil prices for the Brent type have a significant negative effect on the exchange rates. As for the inflation variable, it does not have a significant effect on the exchange rates. The government as a policy maker is expected to be able to regulate macroeconomic factors, maintain political stability, and control the supply of crude oil properly to maintain the exchange rate stability.</em>

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“…While the impact of trade and financial liberalisation on growth and macroeconomic variables has been extensively researched in Nigeria (Akpan, 2004;Kaita, 2015;Saifullahi and Tanimu, 2015;Danlami et al, 2018;Aigheiyisi and Isikhuemen, 2018;Apanisile and Okunlola, 2020;Aremo and Arambada, 2021;among others), little attention has been paid to unravel the impact of trade and financial liberalisation on current account balance. Several studies looked at macroeconomic and institutional factors, monetary policy, fiscal policy shock, and adjustment policy as determinants of current account (Longe, Muhammad, Ajayi and Omitogun, 2019;Danmola and Olateju, 2013;Uneze and Ekor, 2012;Oshota, 2015;Udah, 2010;Chete, 2001;Kudaisi and Olomola, 2019;Sule and Shuaibu, 2020;among others). This is surprising because trade and financial openness might have a major influence on Nigeria's current account balance especially as the country increases its trade horizon and financial sector competition.…”

Section: Introductionmentioning

confidence: 99%

Trade, Financial Liberalisation and Current Account Balance in Nigeria

Kudaisi¹

2022

OJBE

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This paper examines the individual and interactive impacts of trade and financial liberalization on Nigeria’s current account balance between 1986 and 2019. An autoregressive distributed lag technique is used to investigate the short- and long-run effects of the de facto measure of trade openness and the de jure measure of financial openness by Chinn-Ito on the current account. The finding suggests that financial liberalization, in particular, has an insignificant negative effect on the current account, whereas trade has a non-significant positive impact in the long-run. The interaction of the variables in the long-run produces significant positive influence on the account. The short-run effects show a positive impact of financial liberalization, whereas the interplay of the variables has a negative impact on the current account. The study concludes that the interaction of trade and financial liberalization is critical in improving the current account balance in Nigeria.

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Oil price, trade openness, current account balances and the official exchange rate in Nigeria

Cited by 5 publications

References 53 publications

Does Oil Price and Trade Openness Nexus along with Foreign Direct Investment have Influence on Economic Growth in Thailand

Does Oil Price and Trade Openness Nexus along with Foreign Direct Investment have Influence on Economic Growth in Thailand

Pengaruh Faktor Ekonomi Makro, Kestabilan Politik dan Harga Minyak Dunia pada Nilai Tukar Rupiah terhadap Dolar Amerika Serikat

Trade, Financial Liberalisation and Current Account Balance in Nigeria

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