Original scientific paper

https://doi.org/10.2478/zireb-2021-0002

Exchange Rate Volatility and Sectoral Analysis of Non-Oil Export in Nigeria

Lukman Oyeyinka Oyelami orcid.org/0000-0002-9958-1815 ; University of Lagos, Lagos, Nigeria
Omowumi M. Ajeigbe ; Department of Economics, Redeemer’s University Ede, Osun, NG 7914, Nigeria

Abstract

The paper seeks to assess the industry-based effect of exchange rate volatility on the export of non-oil sector in Nigeria. Theoretically and empirically, volatility-trade link is ambiguous. The paper employed bound test for co-integration between exchange rate volatility and exports of non-oil products. Empirically, the results show that we can accept the hypothesis of no co-integration between volatility and export of non-oil industries in most cases. Therefore, the study concludes that the exchange rate volatility can actually produce negative effect on non-oil export industries in the short-run especially the big industries (Agriculture, food and manufacturing) but this effect does not linger into the long-run and this suggests that most of these industries have been able to develop a mechanism to cope with exchange rate volatility problem in the long-run.

Keywords

Volatility; Non-oil; Export; Nigeria

Hrčak ID:

257995

URI

https://hrcak.srce.hr/257995

Publication date:

31.5.2021.

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