THE IMPACT OF INFLATION ON ECONOMIC GROWTH IN NIGERIA
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Abstract
The study seeks to present an empirical analysis of the impact of inflation on economic growth in Nigeria, using annual time-series dataset for the period 1979-2008. It has been argued that inflation is an unavoidable phenomenon in the face of economic growth. That is why, over the years there had been a long standing conventional wisdom that inflation impedes economic growth. The stationarity and co-integration techniques were adopted to examine the data in order to determine if there exists a long-run relationship among the variables. Also, using OLS regression technique, our empirical findings revealed an inverse significance relationship between inflation and economic growth in Nigeria. These findings revealed an inverse significant relationship between inflation and economic growth in Nigeria. These findings recommend among others, inflation targeting in controlling inflation in Nigeria.
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