Exchange Rate Volatility and Sectoral Analysis of Non-Oil Export in Nigeria

Lukman Oyelami and Ajeigbe Omowumi M. ()
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Ajeigbe Omowumi M.: Omowumi M. Ajeigbe is at Department of Economics, Redeemer’s University Ede, Osun, NG 7914, Nigeria

Zagreb International Review of Economics and Business, 2021, vol. 24, issue 1, 21-36

Abstract: The paper seeks to assess the industry-based effect of exchange rate volatility on the export of non-oil sector in Nigeria. Theoretically and empirically, volatility-trade link is ambiguous. The paper employed bound test for co-integration between exchange rate volatility and exports of non-oil products. Empirically, the results show that we can accept the hypothesis of no co-integration between volatility and export of non-oil industries in most cases. Therefore, the study concludes that the exchange rate volatility can actually produce negative effect on non-oil export industries in the short-run especially the big industries (Agriculture, food and manufacturing) but this effect does not linger into the long-run and this suggests that most of these industries have been able to develop a mechanism to cope with exchange rate volatility problem in the long-run.

Keywords: Volatility; Non-oil; Export; Nigeria (search for similar items in EconPapers)
JEL-codes: F10 F31 O5 Q1 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:zirebs:v:24:y:2021:i:1:p:21-36:n:1002

DOI: 10.2478/zireb-2021-0002

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