THEORIES AND THE IMPACT OFGLOBALIZATION ON EXCHANGE RATE IN NIGERIA

Authors

  • Francis Ilenloa Igberaese (Ph.D Economics Student, University of Benin) Academic Planning Division University of Benin Benin City.
  • Faith Ogheneovo Onotaniyohwo (Ph.D Economics Student, University of Benin) Department of Social Sciences School of General Studies Delta State Polytechnic Otefe-Oghara.

Abstract

The paper contributes to the pro and anti-globalization arguments Nigeria. Specifically its objectives are to assess the impact of trade openness and FDI, as measures of globalization on exchange rate in Nigeria and to propagate some theories of globalization as well as determine which of them is relevant in Nigeria. It employs the Error Correction Model econometrics technique with secondary data from Central Bank and the Bureau of National Statistics, of Nigeria between 1981 and 2014. The long run result reveals that while openness has a negative and weak impact on exchange rate in Nigeria, Foreign Direct Investment has a positive but insignificant impact on exchange rate. It recommends among others that Nigeria should pursue policy to stimulate FDI so that it can benefit from globalization in ensuring exchange rate stability while it will be wise for Nigeria to engage in some levels of protectionism in the pursuit of exchange rate stability, since openness is negative.It concludes that internal policy remains the panacea. The study conforms Nigeria to the transformationalists theory of globalization.

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Published

2016-09-28

How to Cite

Igberaese, F. I., & Onotaniyohwo, F. O. (2016). THEORIES AND THE IMPACT OFGLOBALIZATION ON EXCHANGE RATE IN NIGERIA. JOURNAL OF ECONOMICS AND ALLIED RESEARCH, 1(1), 106–119. Retrieved from http://jearecons.com/index.php/jearecons/article/view/12

Issue

Vol. 1 No. 1 (2016): September

Section

Articles