The impactof exchange rate, money supply, Gross Domestic Product and Foreign Direct Investimenton trade balance has been at the center of literature debate over time with varying empirical evidences for different countries.This researchis an empirical investigation of the impact of exchange rate (EXR), money supply(M2), gross domestic product (GDP) and foreign direct investment (FDI) on Nigerian trade balance using the Johansen co-integration and variance decomposition analysis using annual time series data from 1981 to 2016; The empirical results indicate that there exist a long-run relationship between trade balance and its determinant- M2, EXR, GDP and FDI; as employed in the study. On the variance decomposition analyses the percentage of the forecast variance in trade balance is largely explained by innovation in M2 and GDP,as they maintain higher percentage than EXRand FDI. The research concludes with important implications for policy makers because it provides evidence supporting that fact that all the variables havesignificant impact on trade balance adjustment and that appreciation of the exchange rate worsens the trade balance of Nigeria in the long run.
Contents
ABSTRACT The problem of plagiarism in Africa generally is growing at an alarming rate, especially… Read More
In order to successfully complete a project for your senior year, you will need to… Read More
List of Google scholar project topics Google Scholar is a convenient tool that enables users… Read More
If you lost money in a COTPS Ponzi scheme, you should talk to a lawyer… Read More
EXECUTIVE SUMMARY This synopsis is on the Growth and popularity of Naire Marley songs amongst… Read More