EconPapers    
Economics at your fingertips  
 

Do fluctuations in exchange rate hinder non-oil export? An analysis of agriculture and manufacturing in Nigeria

Ekundayo Mesagan (), Kolawole Kushimo () and Dominic Ikoh Umar ()
Additional contact information
Kolawole Kushimo: University of Lagos
Dominic Ikoh Umar: University of Lagos

SN Business & Economics, 2021, vol. 1, issue 11, 1-23

Abstract: Abstract This study examines the effect of exchange rate fluctuation on non-oil export by focusing on both manufactured exports and agriculture exports in Nigeria between 1970 and 2019. The study employs the vector error correction framework, the impulse response and variance decomposition analyses to analyse data on agriculture exports, manufacturing exports, exchange rate, interest rate, and inflation rate. Findings suggest that long run relationship exists among the variables. The vector error correction analysis reveals that exchange rate depreciation positively impacts agriculture exports but negatively impacts manufacturing exports in Nigeria. However, both the impulse response and variance decomposition analyses confirm that exchange rate fluctuation has a higher significance on manufacturing exports than agriculture exports by accounting for the largest forecast error variance in manufacturing exports than in agriculture exports over the forecast horizon. We conclude that fluctuations in exchange rate significantly impact the non-oil exports in Nigeria. Hence, to enhance the non-oil exports, government could consider enhancing the local capacity to produce for exports by reducing tariffs for manufactured inputs. They can also set up modular mechanised farms for agriculture graduates and farmers to boost agriculture exports and stabilize the exchange rate.

Keywords: Exchange rate; Agriculture exports; Manufacturing exports; Non-oil exports (search for similar items in EconPapers)
JEL-codes: F31 F41 O24 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s43546-021-00156-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:snbeco:v:1:y:2021:i:11:d:10.1007_s43546-021-00156-4

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/43546

DOI: 10.1007/s43546-021-00156-4

Access Statistics for this article

SN Business & Economics is currently edited by Gino D'Oca

More articles in SN Business & Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2022-01-09
Handle: RePEc:spr:snbeco:v:1:y:2021:i:11:d:10.1007_s43546-021-00156-4