ABSTRACT
This study analyses the real exchange rate-domestic consumption relationship in Nigeria using the Smooth Transition Autoregressive (STAR) model from 1981 to 2016. Findings shows that domestic consumption determines the regime shift in real exchange rate suggesting a nonlinear linkage ofreal exchange rate and domestic consumption with clearly distinct regimes. Exchange rate is shown to have significant linear effect from previous exchange rate. On the other hand, current foreign consumption is positive but has no significant impact on the exchange rate in the linear part of the model. In the nonlinear part of the model, we found evidence of a significant negative relationship between real exchange rate and domestic consumption, thus supporting the proposition by standard International Real Business Cycle (IRBC) Model. In the face of the wide disparity in literature trying to establish the prediction of IRBC model, we found evidence of bi-directional nonlinear granger causality between real exchange rate and domestic consumption. The study concludes that the relationship between real exchange rate and domestic consumption is indeed nonlinear and that fiscal and monetary authorities should develop policies that will help strengthen domestic production to further reduce import component in domestic consumption.
Abstract
Although climate change is global threat, developing countries have been identified as most vulnerable owing to...
ABSTRACT
Methicillin resistance in Staphylococcus aureus (MRSA) is progressively increasing globally and has become a global health conce...
Background to the Study
Sexual assault is becoming prevalent among students across different colleges (...
ABSTRACT
This study was carried out on the prevention of mother to child transmission of HIV (PMTCT) pr...
ABSTRACT
The main aim of this study is to assess housing development and the affordability in Ogun State.Survey rese...
ABSTRACT:- This research work was designed to finding out the importance of indigenous lang...
Abstract
Although English language is now the language of government, business and commerce, education, the mass media,...
ABSTRACT
The study examines the impact of Human Resources Management Policies on workers performance, with special reference to First Ban...
Abstract
Flooding is persistent in Lagos Metropolis. The objective of this study is to ascertain the causes, magnitude,...
BACKGROUND OF THE STUDY
Budget and Budgeting are concepts traceable to the Bible days, precisely the da...