UNSTABLE MACROECONOMIC INDICATORS AND VALUES OF EXPORT IN NIGERIA
Abstract
The study examined unstable macroeconomic indicators and values of export in Nigeria. The specific objectives are as follows, to examine the effect of inflation rate on values of export in Nigeria, to ascertain the effect of exchange rate on values of export in Nigeria and to assess the effect of interest rate on values of export in Nigeria. The study used secondary sources of data from Central Bank of Nigeria Statistical bulletin. Ex-post facto research design was also adopted. The study employed multiple regressions of Ordinary Least Square (OLS) method. The result revealed that Inflation rate had positive and non-significant effect on values of export in Nigeria (t-statics is 0.698872 while the probability value is 0.4916). Exchange rate had positive and significant effect on values of export in Nigeria (t-statics is 3.330717 while the probability value is 0.490.002916). Interest rate had negative and significant effect on values of export in Nigeria (-statics is -2.110512 while the probability value is 0.0459). From the findings the following recommendations were made; a major policy implication of this result is that concerted effort should be made by policy makers to increase the level of output in Nigeria by improving productivity/supply in order to reduce the prices of goods and services (inflation) so as to boost the growth of the economy. Inflation can only be reduced to the barest minimum by increasing output level (GDP). Interest rate is to be considered for there to be a meaningful economic activity interest rate on investible fund must be brought low either by monetary or fiscal policy measures to encourage output and increase income. This is to enable appreciable level investment to exist within the economy and in turn stimulate economic growth. There should be a change in business operation and must become formal without becoming too bureaucratic (Burns, 2001) and the change must be properly managed if successful, the export are to perform and grow. The Federal government and its agencies should also formulate policies that will encourage exporters to source funds from the capital market as well as improving business conditions and the business environment.
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