Impact of Exchange Rate Fluctuation on Nigeria Economy Growth

@article{1706184,
      author = {Najeem Adekunle Olawale},
      title = {Impact of Exchange Rate Fluctuation on Nigeria Economy Growth},
      journal = {Iconic Research And Engineering Journals},
      year = {2024},
      volume = {8},
      number = {2},
      pages = {706-723},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1706184.pdf},
      abstract = {The Nigerian economy is currently challenged by exchange rate fluctuations, leading to rising inflation and economic instability. Despite numerous studies and government interventions, these issues persist. This research investigates the impact of exchange rate volatility on Nigeria's economic growth, focusing on the low growth rates linked to inconsistent exchange rate policies and the country's economic structure. The study utilizes both quantitative data, sourced from the Central Bank of Nigeria, the National Bureau of Statistics, IMF, and the World Bank, covering the period from 1960 to 2022, and qualitative data from journal reviews. Employing the Multivariate Adaptive Regression Spline (MARS) method, the research identifies nonlinear relationships between GDP and key variables, including exchange rates, interest rates, inflation, imports, and exports. The findings indicate that exchange rate fluctuations are the most significant factor affecting economic growth, with a direct and substantial impact on GDP. Additionally, the study reveals that interest rates, imports, and exports have bidirectional effects on GDP. The results underscore the need for Nigerian government reforms to stabilize the exchange rate and mitigate its adverse effects on economic growth.},
      keywords = {Exchange rate, Economic growth, Nigeria, GDP},
      month = {August},
  }