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Oil Price Shock and Macroeconomic Performance in Nigeria

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dc.contributor.author Ogwuche, David D.
dc.date.accessioned 2024-07-02T12:58:06Z
dc.date.available 2024-07-02T12:58:06Z
dc.date.issued 2016
dc.identifier.issn 2222-2855
dc.identifier.uri http://localhost:8080/xmlui/handle/123456789/2452
dc.description.abstract Nigeria is a mono-product economy, where the main export commodity is crude oil, changes in oil prices has implications for the Nigerian economy and, in particular, exchange rate movements. The latter is mostly important due to the double dilemma of being an oil-exporting and oil-importing country, a situation that merged in the last decade. The study examined the effects of oil price shock on macroeconomic performance in Nigeria using yearly data from the year 1979 to 2014. The theoretical framework of this study is based on unrestricted Vector Auto Regression model by Sims (1980). The models are used to estimate the relationship between oil price changes, and inflation rate. Gross Domestic Product and real exchange rate. Unit root tests, Johansen co-integration technique, variance decomposition test, granger casualty test, and vector Auto Regression Mechanism were used to examine the speed of adjustment of the variables from the short-run dynamics to the long-run. It was observed that a proportionate change in oil price leads to a more than proportionate change in real exchange rate, interest rate and Gross Domestic Product in Nigeria. Nigeria government should diversify from the Oil sector to other sectors of the economy so that Crude oil will no longer be the mainstay of the economy and frequent changes in crude oil prices will not influence exchange rate volatility significantly in Nigeria. en_US
dc.description.sponsorship Self en_US
dc.language.iso en en_US
dc.publisher Journal of Economics and Sustainable Development en_US
dc.relation.ispartofseries Vol. 7;N0 22
dc.subject Oil price en_US
dc.subject Macroeconomic variable en_US
dc.subject VAR etc. en_US
dc.title Oil Price Shock and Macroeconomic Performance in Nigeria en_US
dc.type Article en_US


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