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This study estimated the impact of exchange rate (EXCH) movements on the manufacturing sector
in Nigeria over the period 1981–2016. Time series data and ordinary least square (OLS) estimation
technique were employed in this study to address the specified objective. The variables analysed were
EXCH, manufacturing GDP (MGDP), government capital expenditure, foreign direct investment (FDI),
credit to private sector and value of imports. From the result, it is apparent that EXCH movements play
a significant role in the manufacturing sector’s performance in Nigeria. Specifically, the findings showed
that EXCH, government capital expenditure (GCEXP), imports and FDI were positively related to
MGDP, while credit to private sector was negatively related. Among others, the study recommends that
the apex bank keep a closer watch on EXCH developments in order to keep formulating up-to-date
policies that will ultimately enhance EXCH stability. This will largely contribute to the development of
the manufacturing sector in the short and long run