Macroeconomic Effects of Exogenous Oil Price Shock in Nigeria: Persistent or Transitory

Angela Ifeanyi Ukemenam, Babatunde Opadeji, Tuwe Soro Garbobiya and Augustine Ujunwa ()

International Journal of Economics and Finance, 2018, vol. 10, issue 11, 28

Abstract: This paper examines the macroeconomic effects of exogenous oil price shock in Nigeria. The paper additionally investigates the symmetric effects of oil price shock and the persistence and/or transitory nature of the shock. To achieve these objectives, the Generalised autoregressive conditional heteroskedasticity (GARCH), Component generalised autoregressive conditional heteroskedasticity (CGARCH) and Exponential generalized autoregressive conditional heteroskedasticity (EGARCH) were employed to estimate the various equations. The results showed that oil price volatility has significant positive effect on exchange rate, foreign external reserves, government revenue, and capital importation. The results also revealed symmetric and persistent effect of oil shock in Nigeria. Based on the results, the paper made recommendations for ameliorating and/or insulating Nigeria from the vulnerabilities of oil price shocks.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.ccsenet.org/journal/index.php/ijef/article/download/0/0/37195/37439 (application/pdf)
http://www.ccsenet.org/journal/index.php/ijef/article/view/0/37195 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijefaa:v:10:y:2018:i:11:p:28

Access Statistics for this article

More articles in International Journal of Economics and Finance from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().