The implications of exchange rate fluctuations on human welfare in Nigeria
Anu Keshiro Toriola (),
Rahmon Abiodun Folami,
Adewale Olakunle Afolabi and
Felix Odunayo Ajayi
Additional contact information
Anu Keshiro Toriola: Dept of Economics, Olabisi Onabanjo University, Ago-Iwoye, Nigeria
Rahmon Abiodun Folami: Dept of Banking and Finance, Olabisi Onabanjo University, Ago-Iwoye. Nigeria.
Adewale Olakunle Afolabi: Dept of Business Administration, Olabisi Onabanjo University, Ago-Iwoye, Nigeria.
Felix Odunayo Ajayi: Dept of Economics, Olabisi Onabanjo University, Ago-Iwoye, Nigeria.
BizEcons Quarterly, 2020, vol. 7, 13-25
In Nigeria, the sliding exchange rate has positioned the country amongst nations with the lowest standard of living. This study examined exchange rate fluctuations and human welfare changes in Nigeria. We specifically examined the trend of exchange rate and human welfare, investigated the effect of exchange rate fluctuations on human welfare indicators, and assessed the direction of causality between exchange rate and human welfare indicators in Nigeria. The study follows ex post facto research and data were sourced from Central Bank of Nigeria (CBN) Statistical Bulletin and World Bank Development Index (WDI) between 1981 and 2017. The Ordinary Least Squares (OLS) and Ganger causality test were used in the actual estimation. The result showed that, interest rate exerts a significant positive effect on human welfare in Nigeria while exchange rate fluctuations and inflation exert an insignificant effect on human welfare in Nigeria. The Granger causality test established a unidirectional causality effect of human welfare on exchange rate fluctuations in Nigeria. The study recommended that government should discourage the importation of all products that can be produce locally and which the country has abundant resources to produce to boost the exchange rate.
Keywords: Exchange rate; Human welfare; Interest rate; Inflation (search for similar items in EconPapers)
JEL-codes: C32 D60 F31 N37 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://bequarterly.rysearch.com/wp-content/uploads ... ate-fluctuations.pdf Full text (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:ris:buecqu:0019
Access Statistics for this article
BizEcons Quarterly is currently edited by Olaniyi Evans
More articles in BizEcons Quarterly from Strides Educational Foundation
Bibliographic data for series maintained by Olaniyi Evans ().