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Inflation and Standard of Living in Nigeria

Authors: OGBEBOR Peter , Oguntodu James .A , Oyinloye, Paul O.

Publication Type: Journal article

Journal: Developing Country Studies Www.iiste.org

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Abstract

Standard of living is very germane to every economy. It gives a broad view of how the economy is fairing on a
global scale. If an individual cannot get required basic necessities due to low purchasing power, his/her marginal
propensity to consume (MPC) rises which makes it more difficult for the individual to live comfortably hence
the standard of living dips Several researches have been carried out but the standard of living still remains
abysmally low. From empirical review we find that several countries in sub-Sahara Africa, Nigeria inclusive
suffers from low standard of living. The case of Nigeria being evidently sever as the Nigeria currently the
poverty capital of the world with over 91 million people living below in abject poverty. Time series data on
inflation rate and standard of living proxied by the Human Development Index (HDI) between 1998 and 2017
was used for this research. Augmented Dickey Fuller and Phillip-Perron unit root tests were used to test for
stationarity of the data. Based on findings, the Auto Regressive Distributed Lagged (ARDL) model was adopted
for inferential analyses. Descriptive statistics employed include skewness, kurtosis, Jarque-Bera test and Breuch-
Pagan-Godfrey serial correlation LM test, Breuch-Pagan test for heteroscedasticity and the Durbin-Watson test.
Results indicated that there exists a long-run relationship between Inflation and standard of living. Inflation
exhibited a negative and significant effect with a coefficient of -0.034 against a P-value of 0.017 which implied
that a unit increase in inflation brings about 0.034unit decrease in standard of living over the period of study.
Based on findings we recommend that a proper blend of fiscal and monetary policies should be employed to
improve the standard of living of Nigerians.

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OGBEBOR,P. Oguntodu,J. Oyinloye,,P.O . (2020). Inflation and Standard of Living in Nigeria, 10 (), 53-53.

OGBEBOR,P. Oguntodu,J. Oyinloye,,P.O . "Inflation and Standard of Living in Nigeria" 10, no (), (2020): 53-53.

OGBEBOR,P. and Oguntodu,J. and Oyinloye,,P.O and . (2020). Inflation and Standard of Living in Nigeria, 10 (), pp53-53.

OGBEBORP, OguntoduJ, Oyinloye,PO, . Inflation and Standard of Living in Nigeria. 2020, 10 ():53-53.

OGBEBOR,Peter , Oguntodu,James .A , and Oyinloye,,Paul O. . "Inflation and Standard of Living in Nigeria", 10 . (2020) : 53-53.

O.Peter O.James .A & O.Paul O. , "Inflation and Standard of Living in Nigeria" vol.10, no., pp. 53-53, 2020.

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