International Journal of Physical and Social Sciences
  • Year: 2014
  • Volume: 4
  • Issue: 10

Exchange Rate Pass Through to Domestic Prices in Nigeria (1982 - 2010)

  • Author:
  • Vincent Iorja Gisaor, Iorwuese Tyopev, Bruce Iortile Iormom
  • Total Page Count: 15
  • Page Number: 37 to 51

*Department of Economics, Federal University, Wukari

**Ph.D Student, Economics, Benue State University, Makurdi

***M.Sc. Student, Economics, Benue State University, Makurdi

Online published on 22 January, 2015.

Abstract

The persistent double-digit inflationary rate in Nigeria prompted the research which investigated the impact of Exchange rate-pass-through to domestic prices in Nigeria between 1982 and 2010 using time series data generated from the CBN and NBS. Using the ADF, Johansen Cointegration and Vector Error Model as the methodology, the empirical evidence arising from the various econometrics tests found that exchange rate is significant in explaining prices in Nigeria during the period of the analysis. Taming exchange rate fluctuations and sustained domestic production were recommended.

Keywords

Effect, Exchange Rate, Pass Through, Domestic Prices, Nigeria