The Effect Of Exchange Rate On Economic Growth In Nigeria
ABSTRACT
The main objective of this study is to investigate the effect of exchange rate on economic growth in Nigeria. Specifically, this study examined the impact of exchange rate on gross domestic product (GDP), gross national product (GNP) and unemployment in Nigeria. The geographic scope was the public sector of the Nigerian economy (comprising all ministries, departments and agencies of the federal government of Nigeria for a 10-year period from 2013 to 2022. The research design that this study adopted was ex-post facto research design. Since the data used is sourced from the National Bureau of Statistics and the Central Bank of Nigeria websites, the sample size of this study consisted of all the ministries, departments and agencies whose data relating to the measures of the dependent variables used in this study are available on the internet. Therefore, the sample size used for this study was fifty (50) MDAs of the federal government. Descriptive statistics, some diagnostic tools and Ordinary Least Square techniques were employed in the data analysis. Findings from this study indicated that the effect of exchange rate on economic growth in the economy of Nigeria is positive and statistically significant. Therefore, the study recommended that government should provide enabling environment to encourage individuals to put in their best to enhance the GNP which will translate to a better well-being of the masses.