ANALYSIS OF SOME SELECTED MACROECONOMIC VARIABLES AND BALANCE OF PAYMENT DISEQUILIBRIUM IN NIGERIA

Authors

  • Benjamin Olusola Abere Edo State University Uzairue, Edo State, Nigeria

Keywords:

Interest rates, the balance of payments, the price of crude oi, Nigeria, debt, foreign direct investments

Abstract

The primary objective of this research was to investigate a few specific macroeconomic issues and the Nigerian payments imbalance. The main aim and objective of this study is to evaluate the short and medium term connection among select macroeconomic parameters and imbalance in Nigerian's balance of payments. The National Bureau of Statistics and the CBN statistics bulletin were used in the compilation of the time series data for the years 1986 to 2021. The ARDL technique to co-integration and error correction mechanism method was used to analyze the data. Our Wald bound test revealed a significant long-term association between Nigeria's FDI, crude oil prices, currency rates, interest rates, and its total debt (NGD). According to results of the Error Correction Model, in the short term Nigeria's balance of payments is expected to be negatively affected by selected macro factors. If the selected macroeconomic factors can be controlled effectively, the research came to the conclusion that the Nigerian economy will continue to produce favorable Balance of Payments yearly. The study's findings suggest that the government should spend more money reviving all faltering industries, assisting indigenous companies, promoting locally produced commodities, and encouraging exports of manufactured or finished goods. Additionally, the country should limit its reliance on non-essential foreign goods and services.

Author Biography

Benjamin Olusola Abere, Edo State University Uzairue, Edo State, Nigeria

Department of Economics,
Edo State University Uzairue, Auchi Abuja Road,
Iyamho – Uzairue Edo State, Nigeria

Downloads

Published

2024-01-29

How to Cite

Abere, B. O. (2024). ANALYSIS OF SOME SELECTED MACROECONOMIC VARIABLES AND BALANCE OF PAYMENT DISEQUILIBRIUM IN NIGERIA. FUW-International Journal of Management and Social Sciences, 9(1), 94–105. Retrieved from https://fuw-ijmss.com.ng/index.php/fijmss/article/view/66