Empirical Analysis Of Effect Of Exchange Rate Volatility On Manufacturing Sector Output In Nigeria:- Ukattah Chiadikaohi D
ABSTRACT
This study
investigates the effect of exchange rate volatility on manufacturing sector of
Nigeria (1981- 2018) using the ordinary least square method which incorporates
endogenity in its estimation, the unit root test was carried out for each of
the variables using the ADF (Augmented Dickey Fuller) which shows that MAN,
RGDP, EXR and INT are stationary at I" difference, and CPI is stationary
al level. The cointegraton was also conducted lo determine if there exists a
long run relationship among variables. Finding from the study shows that
interest rate and exchange rate were statistically significant while consumer
price index were statistically insignificant following the 2-t rule of thumb,
also, only consumer price index was found to be statistically significant while
the exchange rate and interest rate were not statistically significant. The
study recommends among others that an effective policy should be made based on
the fiscal and monetary policies which should be aimed at achieving a realistic
exchange rate for naira. Strict foreign exchange control policies should he
adopted in order to help in determination of appropriate exchange rate value.
This will go a long way to strengthen the naira. Exchange rate liberalization
is also critical in facilitating trade in any economy, we therefore advise the
policy makers to ensure that exchange to ensure that exchange rate should
determine by the forces of demand and supply.
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UKATTAH, D (2026). Empirical Analysis Of Effect Of Exchange Rate Volatility On Manufacturing Sector Output In Nigeria:- Ukattah Chiadikaohi D. Repository.mouau.edu.ng: Retrieved Jan 08, 2026, from https://repository.mouau.edu.ng/work/view/empirical-analysis-of-effect-of-exchange-rate-volatility-on-manufacturing-sector-output-in-nigeria-ukattah-chiadikaohi-d-7-2
DAVID, UKATTAH. "Empirical Analysis Of Effect Of Exchange Rate Volatility On Manufacturing Sector Output In Nigeria:- Ukattah Chiadikaohi D" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 07 Jan. 2026, https://repository.mouau.edu.ng/work/view/empirical-analysis-of-effect-of-exchange-rate-volatility-on-manufacturing-sector-output-in-nigeria-ukattah-chiadikaohi-d-7-2. Accessed 08 Jan. 2026.
DAVID, UKATTAH. "Empirical Analysis Of Effect Of Exchange Rate Volatility On Manufacturing Sector Output In Nigeria:- Ukattah Chiadikaohi D". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 07 Jan. 2026. Web. 08 Jan. 2026. < https://repository.mouau.edu.ng/work/view/empirical-analysis-of-effect-of-exchange-rate-volatility-on-manufacturing-sector-output-in-nigeria-ukattah-chiadikaohi-d-7-2 >.
DAVID, UKATTAH. "Empirical Analysis Of Effect Of Exchange Rate Volatility On Manufacturing Sector Output In Nigeria:- Ukattah Chiadikaohi D" Repository.mouau.edu.ng (2026). Accessed 08 Jan. 2026. https://repository.mouau.edu.ng/work/view/empirical-analysis-of-effect-of-exchange-rate-volatility-on-manufacturing-sector-output-in-nigeria-ukattah-chiadikaohi-d-7-2