Exchange rate volatility and non-oil exports in Nigeria : An empirical investigation / Sa’ad Babatunde Akanbi...[et al.]

• Main Authors: Akanbi, Sa’ad Babatunde, Yusuf, Hammed Agboola, Oluwaseyi, Musibau Hammed
• Format: Article
• Language: English
• Published: Faculty of Business and Management, Universiti Teknologi MARA, Puncak Alam Campus 2017
• Subjects: Balance of trade; Export marketing. International marketing; Money
• Online Access: http://ir.uitm.edu.my/id/eprint/19369/8/AJ_SAAD%20BABATUNDE%20AKANBI%20JEEIR%20B%2017.pdf; http://ir.uitm.edu.my/id/eprint/19369/; http://www.jthca.org

The adoption of a flexible exchange rate system since 1986 in Nigeria has made the country witnessed varying rate of the naira vis-à-vis the U.S dollar. This paper examines exchange rate volatility with ARCH model and its various extensions (GARCH, TGARCH, and EGARCH) using quarterly exchange rate series from 1986-Q1 to 2014-Q4.The impact of exchange rate volatility on non-oil exports was also examined using Error Correction Model (ECM) with two different measures of volatility. The results obtained confirm the existence of exchange rate volatility and also found a significant negative effect on non-oil export performance in Nigeria. Therefore, the Nigerian government should ensure an appropriate policy mix that not only ensures a stable and realistic exchange rate but also conducive atmosphere for production and exportation.