Impact of Exchange Rate Fluctuation on Selected Economic Sectors of the Nigerian Economy
Authors
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NDUBUAKU Victor C
Department of Accountancy, Federal College of Agriculture Ishiagu, Ebonyi State, Nigeria
https://orcid.org/0000-0002-9147-6594
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ONWUKA Kizito
Department of Accountancy, Federal College of Agriculture Ishiagu, Ebonyi State, Nigeria
https://orcid.org/0000-0002-0237-7587
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ONYEDIKA Chukwuka
Department of Accountancy, Federal College of Agriculture Ishiagu, Ebonyi State, Nigeria
https://orcid.org/0000-0001-9930-6920
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CHIMEZIE Isabella Chinonye
Department of Accountancy, Federal College of Agriculture Ishiagu, Ebonyi State, Nigeria
https://orcid.org/0000-0002-4600-4096
DOI:
https://doi.org/10.18488/journal.26.2019.81.21.36Abstract
The study investigated the impact of exchange rate fluctuation on selected economic sectors of the Nigerian economy. The study covered the agricultural (AGDP), manufacturing (MGDP), petroleum (PGDP) and service sector (SGDP) of the Nigerian economy. The petroleum sector represented the oil sector while the agricultural (AGDP), manufacturing (MGDP), and service sector (SGDP) represented the non-oil sector. The main objective of the study was to determine whether exchange rate fluctuations had a significant impact on the selected sectors of the economy. These sectors were invariably the largest contributors to the GDP. The time scope covered 1981-2016. Data for the study were obtained specifically from CBN statistical bulletin (2016). The data were analysed using the Auto Regressive Distributed Lagged (ARDL) model. The study concluded that there was no significant impact of exchange rate on AGDP, MGDP and SGDP respectively. However, there was a positive and significant impact of exchange rate on PGDP. The study recommended that Nigeria’s economy should be diversified to enable the non-oil sector to become significant foreign exchange earners.
