OIL PRICE AND EXCHANGE RATE VOLATILITY IN NIGERIA
Lawson E. Igbinovia () and
Omorose A. Ogiemudia ()
Additional contact information
Lawson E. Igbinovia: Banking and Finance Department, Faculty of Management Sciences University of Benin, Benin City, Nigeria
Omorose A. Ogiemudia: Banking and Finance Department, Faculty of Management Sciences University of Benin, Benin City, Nigeria.
Oradea Journal of Business and Economics, 2021, vol. 6, issue 1, 74-86
This study examined oil price influence on the Nigeria exchange rate volatility spanning the retro of thirty five (35) years. The Simultaneous equation modeling of Granger causality test and Vector Error Correction Model (VECM) techniques were adopted, to analyzed the data stream from 1983 â€“ 2019. A dynamic framework analysis that includes test of unit root, descriptive statistics and co-integration preliminary test were carried out. Specifically, the empirical findings show that the coefficient of oil price and other variables (rate of interest, inflation rate and external reserve) considered has varying degree of significant relationship with volatility of exchange rate in Nigeria both in the succinct and long run during the retro under review. The study concludes that oil price has a long run positive non-significant influence on exchange rate volatility and a short run negative non-significant influence on exchange rate volatility in Nigeria during the sample retro under concern.
Keywords: Oil Price; Exchange Rate Volatility; Co-integration; Causality; VECM; Nigeria (search for similar items in EconPapers)
JEL-codes: C22 O24 F31 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://ojbe.steconomiceuoradea.ro/wp-content/uploa ... JBE-61_fin-74-86.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ora:jrojbe:v:6:y:2021:i:1:p:74-86
Access Statistics for this article
More articles in Oradea Journal of Business and Economics from University of Oradea, Faculty of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Tomina SAVEANU ().