Inflation and Economic Growth in Nigeria

Inflation and Economic Growth in Nigeria

Author by Mr. Binuyo Babatunde

Journal/Publisher: International Journal Of Research And Scientific Innovation (ijrsi)

Volume/Edition: 6

Language: English

Pages: 136 - 142

Abstract

he study examined “ inflation and economic growth
in Nigeria”. Time series data from 1981-2017 was used. The
study used real gross domestic product as dependent variable
while interest rate (INT), inflation rate (INF), consumer price
index(CPI), foreign exchange rate(EXCH) were used as
independent variables. Unit root test was carried out using
augmented dickey fuller and the result indicated that all the
vairables were stationary at first difference. Thus, the vector
Error correction method (VECM) was employed for this
research to find the relationship between inflation and economic
growth in Nigeria. The study observed that there was a negative
relationship between interest rate and real gross domestic
product, exchange rate has a negative relationship with real
gross domestic product and finally, consumer price index has a
positive relationship with real gross domestic product. The study
therefore suggested that government should encourage the
export promotion strategies in order to maintain a surplus
balance of trade and also conducive enviornment, adequate
security, effective fiscal and monetary, as well as infrastructural
faclities should be provieded so that foreign investors will be
attracted to invest in Nigeria.


Other Co-Authors