AN ANALYSIS OF THE RELATIONSHIP BETWEEN REAL EXCHANGE RATE AND DOMESTIC CONSUMPTION IN NIGERIA (1981-2016)

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dc.contributor.authorBABANGIDA, Jamilu Said
dc.date.accessioned2021-10-26T07:59:43Z
dc.date.available2021-10-26T07:59:43Z
dc.date.issued2021-03
dc.descriptionA DISSERTATION SUBMITTED TO THE SCHOOL OF POSTGRADUATE STUDIES, AHMADU BELLO UNIVERSITY, ZARIA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER’S DEGREE IN ECONOMICS DEPARTMENT OF ECONOMICS, FACULTY OF SOCIAL SCIENCES AHMADU BELLO UNIVERSITY, ZARIA NIGERIAen_US
dc.description.abstractThis dissertation analyses the real exchange rate-domestic consumption relationship in Nigeria using the Smooth Transition Autoregressive (STAR) model from 1981 to 2016. Findings shows that domestic consumption determines the regime shift in real exchange rate suggesting a nonlinear linkage of real exchange rate and domestic consumption with clearly distinct regimes. Exchange rate is shown to have significant linear effect from previous exchange rate. On the other hand, current foreign consumption is positive but has no significant impact on the exchange rate in the linear part of the model. In the nonlinear part of the model, we found evidence of a significant negative relationship between real exchange rate and domestic consumption, thus supporting the proposition by standard International Real Business Cycle (IRBC) Model. In the face of the wide disparity in literature trying to establish the prediction of IRBC model, we found evidence of bi-directional nonlinear granger causality between real exchange rate and domestic consumption. The study concludes that the relationship between real exchange rate and domestic consumption is indeed nonlinear and that fiscal and monetary authorities should develop policies that will help strengthen domestic production to further reduce import component in domestic consumption.en_US
dc.identifier.urihttp://hdl.handle.net/123456789/12647
dc.language.isoenen_US
dc.subjectANALYSIS,en_US
dc.subjectRELATIONSHIP,en_US
dc.subjectREAL EXCHANGE RATE,en_US
dc.subjectDOMESTIC CONSUMPTION,en_US
dc.subjectNIGERIAen_US
dc.subject(1981-2016).en_US
dc.titleAN ANALYSIS OF THE RELATIONSHIP BETWEEN REAL EXCHANGE RATE AND DOMESTIC CONSUMPTION IN NIGERIA (1981-2016)en_US
dc.typeThesisen_US
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