IMPACT OF PERSISTENT DEPRECIATION OF NAIRA CURRENCY ON THE GROWTH OF NIGERIAN ECONOMY (2019-2021)

Afukonyo Shidoiku Daniel

Abstract


Persistent depreciation of naira currency policy is an important tool in macroeconomic management therefore, this paper examined the effects of persistent depreciation of naira currency on the economic growth of Nigeria with additions of 3 others objectives which also assessed the impact of persistent depreciation of naira currency on economic growth and development of Nigeria; the long-run relationship between persistent depreciation of naira currency and the direction of causality between Gross Domestic Products (GDP), persistent depreciation of naira currency, inflation depreciation of and interest depreciation and The research design adopted in this paper were ex-post facto design (the use of secondary data). Data used in this study were observational secondary time series data extracted from the Central Bank of Nigeria’s (CBN’s) statistical bulletin and annual reports that accounts for the 2019-2021 periods. The Augmented Dicker-Fuller (ADF) result indicated that interest rate (INTR) was stationary at levels while GDP, exchange rate (EXCH) and inflation rate(INFL) were found to be stationary at first difference at 5 per cent level of significance with t-statistic value of -5.000498, -6.682082 and -2.659911 with probability values of 0.0004, 0.0000 and 0.0032 respectively, while INTR was stationary at levels with t-statistic value of -3.205035 and probability value of 0.0002. The null hypothesis of the ARDL bound test is that there is no long run relationship (cointegration) among the variables. Given that the computed F-statistic (9.5284333) of the autoregressive distributed lag (ARDL) bounds test is greater than the upper critical value (3.2) at 5 per cent level of significance, the null hypothesis is rejected. This implies that there is a long run relationship between persistent depreciation of naira currency and economic growth. Sequel to the finding of this study, I specifically made the following policy recommendations to the maintenance of stable persistent depreciation of naira currency and in the case of import, tariffs can be placed to be a very high on imported goods thereby discouraging imports.


Keywords


Persistent, Depreciation, Naira, Currency, Growth, Economy.

Full Text:

PDF

References


Acemoglu, D., S. Johnson, and J. A. Robinson (2002). Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution. The Quarterly Journal of Economics 117 (4): 1231-1294.

Africa and Brazil. Nigeria Journal of Economics and Development Matters 2(1): 12-29.

Agene C. T. (1991), Foreign Persistent and International Trade in Nigeria. Merge with M.I Jhigan.

Amsden, A. H. (1997). Editorial: Bringing production back in—Understanding Government's economic role in late industrialization. World Development, 25(4), 469-480.

Anifowose O. K. (1994), Management of Foreign Exchange. A Peep into the Next Decade

Arora, A., & S. Athreye. (2002). The software industry and India’s economic development. Information Economics and Policy, 14(2), 253-273.

Arrow, K. (Ed.). (1962). Economic welfare and the allocation of resources for invention. Princeton, NJ: Princeton University Press.

Audretsch, D. B. and M. P. Feldman. (1996). R&D Spillovers and the Geography of Innovation and Production. American Economic Review, 86(3): 630–640.

Beine, M., F. Docquier, & H. Rapoport,(2001). Brain drain and economic growth: theory and evidence. Journal of Development Economics. 64(1): 275-289.

Bell, M. (2012). J K Rowling and the Publishers' Moan, The Independent. September 23. Accessed online (August 27, 2013) http://www.independent.co.uk/voices/comment/j-krowling-and-the-publishers-moan-8165843.html

Block, F., & M. R.Keller.(2009). Where do innovations come from? Transformations in the US economy, 1970–2006. Socio-Economic Review, 7(3), 459-483.

Bok, D. (2009). Universities in the marketplace: The commercialization of higher education. Princeton University Press.

Brenner, C. and M. Pastor (2013).Buddy, Can You Spare Some Time? Social Inclusion and Sustained Prosperity in America’s Metropolitan Regions. Working paper was presented at the Building Resilient Regions closing symposium at the Urban Institute, Washington, DC.

Bullion Publication of C.B.N. Vol. 21, No. 4 Oct/Dec.

Bush, V. (1945). Science, the endless frontier. Transactions of the Kansas Academy of Science, 48(3), 231-264.

Christensen, C. (1997). The innovator's dilemma: when new technologies cause great firms to fail, Harvard Business Press.

Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: a new perspective on learning and innovation. Administrative science quarterly, 128-152.

Cowen, T. (2011). The Great Stagnation: How America Ate All The Low-Hanging Fruit of Modern History, Got Sick, and Will (Eventually) Feel Better: A Penguin eSpecial from Dutton. Penguin. com.

Cullen, J. (2003). The American dream: A short history of an idea that shaped a nation. Oxford University Press.

De Soto, H. (2000). The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else, New York: Basic Books.

Duke (1963), Ntekop (1997), Either (1973), Clark (1973); Emerging Market: Nigeria, South

Duranton, G. (2011). California dreamin': the feeble case for cluster policies. Review of Economic Analysis, 3(1), 3-45.

Easterly, W. (2001). The political economy of growth without development: A case study of Pakistan. Paper for the Analytical Narratives of Growth Project, Kennedy School of Government, Harvard University. Fagerberg, J, M.P. Feldman and M. Shrolec (forthcoming) Technological Dynamics and Social Capability: Comparing U.S. States and European Nations, Journal of Economic Geography .

Feldman, M. P. and J. Francis. (2003). Fortune Favors the Prepared Region: The Case of Entrepreneurship and the Capitol Region Biotechnology Cluster. European Planning Studies, 11 (7): 765-788.

Feldman, M. P., & Kelley, M. R. (2003). Leveraging research and development: Assessing the impact of the US Advanced Technology Program. Small Business Economics, 20(2), 153-165.

Feldman, M., &Lanahan, L. (2010). Silos of Small Beer: A case study of the efficacy of federal innovation programs in a key midwest regional economy. In S. Progress (Ed.), (Vol.

Fitzgerald, J., & N. G.Leigh. (2002). Economic revitalization: Cases and stdepreciation of gies for city and suburb. Sage Publications, Incorpodepreciation of d.

Gordon, R. J. (2010). Okun's law and productivity innovations. The American Economic Review, 100(2), 11-15.

Green, F., & Zhu, Y. (2010). Overqualification, job dissatisfaction, and increasing dispersion in the returns to graduate education. Oxford Economic Papers, 62(4), 740-763.

Greenstone, M., R. Hornbeck, & E. Moretti. (2010). Identifying Agglomeration Spillovers: Evidence from Winners and Losers of Large Plant Openings. The Journal of Political Economy, 118(3): 536-598.

Hall, B. H., J. Mairesse& P. Mohnen. (2009). Measuring the Returns to R&D. National Bureau of Economic Research.

Hamilton, A. (1791). Report on Manufacturers. In D. Communicated to the House of Representatives, 1791 (Ed.). Washington DC.

Hammer, J. (2009) Development that Adds Up: Accounting for the Social Bottom Line of Triple Bottom Line Investment. Social Equity and Opportunity Forum. College of Urban and Public Affairs. Portland State University.

Hoyman, M., &Faricy, C. (2009). It Takes a Village A Test of the Creative Class, Social Capital, and Human Capital Theories. Urban Affairs Review, 44(3), 311-333.

Hungerford, T. L. (2012). Taxes and the Economy: An Economic Analysis of the Top Tax Depreciation of s Since 1945 (Updated). CRS Report for Congress.

Jaffe, A. B., Trajtenberg, M., & Henderson, R. (1993). Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations. The Quarterly Journal of Economics, 108(3), 577-598.

Keefer, P. and S. Knack. (2002). "Polarization, Property Rights, and the Links Between Inequlaity and Growth. Public Choice 111(1-2):127-54.

Kim, L. (1997). Imitation to innovation: The dynamics of Korea's technological learning, Harvard Business Press.

Lane, R. E. (1994). Quality of Life and Quality of Persons A New Role for Government? Political theory, 22(2), 219-252.

Lei Chen, Kang Can China (2005), On the Impact of Electronic Commerce on International Trade and Countermeasures

Lerner, J. (2009). Boulevard of broken dreams: why public efforts to boost entrepreneurship

and venture capital have failed--and what to do about it. Princeton University Press.

Lerner, J. (2010). Geography, Venture Capital and Public Policy. Rappaport Institute/Taubman Center.

Lipset, S. M. (1959). Democracy and working-class authoritarianism. American Sociological Review, 482-501.

Lucas, R. E. (1988). On the mechanics of economic development. Journal of monetary economics, 22(1), 3-42.

Majekodunmi, 0. (2000), Persistent Depreciation of Volatility: it's Impact on Nigeria Economy 1990-1998. Nkwaopara (1985), Brade and Maindez [1988]; to David Eiteman and Arthur Sotne [1983] Nyong. M. 0. (2003); Predictability and Votetility of Stock Return.

Marshall, A. (1890). Principles of economics. London: MacMillan for the Royal Economic Society, 1961.

Martin, R., & P. Sunley. (2003). Deconstructing clusters: chaotic concept or policy panacea? Journal of Economic Geography, 3(1), 5-35.

Massey, D. S. (1988). Economic development and international migration in comparative perspective. The Population and Development Review, 383-413.

Moyo, D (2009) Dead aid: Why aid is not working and how there is another way for Africa. London: Allen Lane.

Nash, M. (1963). Approaches to the study of economic growth. Journal of Social Issues, 19(1), 1-5.

Nelson, R. (1959). The simple economics of basic scientific research. Journal of Political Economy, 67, 297-306.

North, D. C. (1984). Government and the Cost of Persistent in History. Journal of Economic History, 44(2), 255-264.

North, D. C. and R.P. Thomas (1973) The Rise of the Western World: A New Economic History. By Douglass C. North and Robert Paul Thomas. New York: Cambridge University Press. Ostrom, E. (1986). An agenda for the study of institutions. Public Choice, 48(1), 3-25.

Omotayo A. A. (1990), Impact of Foreign Persistent on Nigeria Economy;

Overseas Development Institute (2009). Growth without development: Looking beyond inequality. Briefing paper 47, February.

Pittau, M.G., R. Massari and R. Zelli (2013) Hierarchical modelling of disparities in preferences for redistribution, Oxford Bulletin of Economics and Statistics, 75(4): 556-84.

Porter, M. E. (1998). Competitive advantage of nations. New York: Free press.

Putnam, R. D., Leonardi, R., &Nanetti, R. Y. (1994). Making democracy work: Civic traditions in modern Italy: Princeton University Press.

Ricardo, D., Gonner, E. C. K., & Li, Q. (1819). The principles of political economy and taxation: World Scientific.

Rodrik, D., A. Subramanian, & F. Trebbi. (2002). Institutions rule: the primacy of institutions over geography and integration in economic development. National Bureau of Economic Research.

Romer, P. (1995). Beyond the knowledge worker. World Link, 28, 56-60.

Rosen, S. (1981). The economics of superstars. The American Economic Review, 71(5), 845858.

Rosenberg, N., &Birdzell, L. E. (1987). How the West grew rich: The economic transformation of the industrial world: Basic Books.

Ruttan, V. W. (2006). Is war necessary for economic growth? Military procurement and technology development: University of Minnesota, Department of Applied Economics.

Salamon, L. M. (Ed.). (2002). The tools of government: A guide to the new governance. Oxford University Press.

Salter, A. J., & B. R. Martin,. (2001). The economic benefits of publicly funded basic research: a critical review. Research Policy, 30(3), 509-532. doi: 10.1016/s0048-7333(00)00091-3

Saxenian, A. (2006). The new argonauts: regional advantage in a global economy. Cambridge, Mass.: Harvard University Press.

Saxenian, A. L. (2002). Brain Circulation: How high-skill immigration makes everyone better off. Brookings Review, 20(1), 28-31.

Schrank, A., & J. Whitford. (2009). Industrial Policy in the United States: A Neo-Polanyian Interpretation.Politics & Society, 37(4), 521-553. doi: 10.1177/0032329209351926

Schumpeter, J. A. (1961). The theory of economic development: An inquiry into profits, capital, credit, interest, and the business cycle (Vol. 55). Transaction Books.

Schumpeter, J. A. a. (2011). The entrepreneur: classic texts by Joseph A. Schumpeter. Stanford, California: Stanford University Press.

Sen, A. (1999). Commodities and Capabilities. Oxford: Oxford University Press.

September 23, 2010). Washington DC: Center for American Progress.

Shandong University, a master's degree thesis, 2006,10.

Shao Beautiful (2006), E- commerce on International Trade Impact Studies [D].

Soete, L. (2001). The new economy: a European perspective: Maastricht University.

Solow, R. M. (1956). A contribution to the theory of economic growth. The Quarterly Journal of Economics, 70(1), 65-94.

Spence, M. (1973). Job market signaling. The quarterly journal of Economics,87(3), 355-374.

Stephan, P. (2012). How economics shapes science. Cambridge, MA: Harvard University Press.

Stiglitz, J. E. (2012). The price of inequality: How today's divided society endangers our future. WW Norton & Company.

T. P. (2004). Beyiond Economic Growth: An Introduction to Sustainable Development: World Bank Publications

Tong Bing-bing (2006), E-commerce on International Trade Impact Studies. Science and Technology Information, 2006 (5) : 225-227. .

Tracey, P., Phillips, N., & Haugh, H. (2005). Beyond philanthropy: community enterprise as a basis for corpodepreciationof citizenship. Journal of Business Ethics, 58(4), 327-344.

Wilson, J. Q., &Kelling, G. L. (1982). Broken windows. Atlantic Monthly, 249(3), 29-38.

Wolfson, M. (1997). Divergent Inequalities: Theory and Empirical Results, Review of Income and Wealth, 43(4): 401-21.

Xu Liangchum (2007), The Impact of Electronic Commerce on International Trade and China's Countermeasures (JJ). Interanationl Trade, 2007-28-31.


Refbacks

  • There are currently no refbacks.


Copyright (c) 2023 Afukonyo Shidoiku Daniel

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

 

 

 

 

 

 

 

 

 

 ISSN (Print):   2695-2319

ISSN (Online): 2695-2327

 

 

   

 

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.