A BOUND TESTING ANALYSIS OF EXCHANGE RATE PASS- THROUGH TO AGGREGATE IMPORT PRICES IN NIGERIA: 1980-2006

Mutiu Oyinlola () and M. Adetunji Babatunde ()
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M. Adetunji Babatunde: Department of Economics, University of Ibadan

Journal of Economic Development, 2009, vol. 34, issue 2, 97-109

Abstract: This paper examines the extent of pass-through of exchange rate into import prices for Nigeria between 1980 and 2006 using the recently developed UECM-Bounds test proposed by Pesaran et al. (2001). Empirical evidence reveals that world export prices has a dominant effect compared to exchange rate in explaining changes in Nigeria¡¯s import prices in the short and long run. The major implication for our study therefore is that exogenous factors such as world export prices appeared to be more important determinants of domestic import prices than a country¡¯s exchange rate policies.

Keywords: Aggregate Import Price; World Export Price; Bound Testing; Nigeria (search for similar items in EconPapers)
JEL-codes: C22 F31 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:jed:journl:v:34:y:2009:i:2:p:97-109

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