This paper investigates the effects of inflation on economic growth in nigeria between 1986 and 2014 secondary data culled from cbn statistical bulletin ( 2014) were used for the study the augmented dickey-fuller technique was adopted to test the unit root property of the series while granger causality was used to test. These costs mean that for a given average inflation rate, higher inflation volatility can depress economic growth (elder, 2004 fatás and mihov, 2005 grier and grier, 2006) there is a large body of economic theory and econometric evidence dealing with impact of monetary policy on inflation volatility (for example, gali and. Reduces manufacturing sector output in zimbabwe for the period 2000-2009 since the economy is highly monetised and has depreciating assets these findings are not in support of that of adaora (2013) study for nigeria adaora ( 2013) reported of significant positive effect of inflation on the manufacturing. Using a threshold regression model developed by khan and senhadji (2001), the study estimated a threshold inflation level of 13 per cent for nigeria below the threshold level, inflation has a mild effect on economic activities, while above it, the magnitude of the negative effect of inflation on growth was high the negative. These three variable gave birth to the three major types of inflation in nigeria these include, the cost-push/price spiral inflation, the demand-pull inflation and the open inflation also read: the effect of inflation on the nigerian economy cost push wage/price spiral inflation cost put wage/price. After numerous attempt by successive administrations to regulate this economic problem using both monetary and fiscal policies, efforts seems to be abysmal as a result, this paper is designed to explore the inflationary trend in nigeria with the view to determining it impact on economic growth the study adopted a.
Impact of inflation on economic growth: case study of nigeria (1970-2013) rosemary emike idalu submitted to the institute of graduate studies and research in partial fulfillment of the requirements for the degree of master of science in economics eastern mediterranean university february 2015 gazimağusa, north. Impact of inflation on economic growth in nigeria (2000-2009) 1chude, daniel izuchukwu and 2chude, nkiru patricia 1lecturer, department of accountancy anambra state university igbariam campus pmb 6059 awka nigeria 2lecturer, department of banking and finance, anambra state university,. Nigeria's economy may be heading to stagflation going by headline inflation, gross domestic products, gdp, and unemployment reports of national macro- economic fundamentals around foreign exchange prices, which have had debilitating impact on the cost of production and prices of goods and. Babatunde ma and shuaibu mi (2011) money supply, inflation and economic growth in nigeria asian-african journal of economics and econometrics vol 11 , no 1, 2011: pp 147-163google scholar bakare, as (2011) an empirical study of the determinants of money supply growth and its effects.
Methods of determining the inflation thresholds are presented in section five data analysis, results and discussions are contained in section six, while section seven concludes the paper 20 growth-inflation nexus in nigeria: some stylized facts the nigerian economy recorded significant growth in the last two quarters 3. Money supply and the subsequent effects on the economy through high general price levels inflation, in the mid 1990's, became worse due to sanctions against nigeria by the international community in the era of democracy which started in may, 1999, ni- geria could not get to the single digit target level of.
Impact of inflation on nigeria economic growth 1981-2015 download the project from chapter one to five with reference inflation rate @ 1863. The main purpose of this study is to ascertain the existence (or not) of a relationship between inflation and economic growth in nigeria the empirical findings maintain the fact that the causality that run from inflation to economic growth is an indication of relationship showing that inflation indeed has an impact on growth. The results confirms that in the long run, interest rate and total public expenditure have significant impact on economic growth in nigeria, while inflation and unemployment has inverse effects on growth in nigeria the possible justification for the inverse effect of inflation on price level is that inflation may not. Growth and inflation granger cause unemployment, also there exist granger causality between economic growth and inflation problems facing nigerian economy today are unemployment and inflation that inflation uncertainties affect both the inter-temporal (through its effect on interest rate) and intra- temporal (through.
Abstract this paper investigates the impact of inflation on economic growth and development in nigeria between 1970- 2010 through the application of augmented dickey-fuller technique in testing the unit root property of the series and granger causality test of causation between gdp and inflation the results of unit root. The study was conducted to evaluate the impact of inflation on economic growth in the context of an emerging market using empirical evidence from nigeria using time series data spanning forty one years (1970-2011) which was obtained from the central bank of nigeria (cbn) statistical bulletin volume 22, and central. Abstract the study examined the effect of inflation on nigeria's economic growth for the period ranging from 1980 to 2015 cointegration approach, vector error correction model (vecm) and granger causality test were employed in the analysis variables engaged in the study involve real gross domestic product ( rgdp),.
This study examines the impact of exchange rate on inflation in nigeria economy between 1970 and 2007 we analysed the trend of inflation and exchange rate in the last 38 years by evaluating the relationship between government expenditure , money supply, oil revenue, exchange rate and inflation as the dependent. Inflation is a social malady as well as a pervasive economic process whose effects are felt by all and sundry in all sectors of the economy. The model accounts for analyzing economic variables like unemployment, monetary shocks, and exchange rate anomalies and also takes into account some critical features of the nigerian economy that impact inflation kelikume further revealed that depreciation has more significant impact on inflation.
The results show that inflation has a negative effect on exchange rate, consumer price index (cpi) and economic growth in nigeria but there exist a positive relationship between inflation and gross domestic product (gdp) keywords: inflation, economic growth, gdp, developing countries i background of the study. Witness economic downturn as an aftermath effect of inflation for this category of countries, inflation has an adverse or negative effect and in such economy, inflation is intolerable over the years in nigeria, the economy has been experiencing rise in price and there has been also economic growth over time as well. Abstract inflation is a major problem in nigeria to stabilize the economy, policy makers have often used fiscal and monetary policies to address inflation for efficacy of policy, it is important to know the likely influence of each of these (. The effect of inflation on the nigerian economy several definitions of inflation are in existence inflation is a situation in which there is price level or in which there would be such a persistent upward movement but for the presence of direct control over prices also, it is “a temporary increase” of the stream of.