Real exchange rate determinants in Nigeria: An application of cointegration and error correction model
Lawal Olumuyiwa Mashood1, Chukwuemeka Lawrence Ani2.
The study examines the elements of real exchange rate in Nigeria. The ADF and KPSS stationarity tests were employed to examine the stationary process of each series and it shows that the macroeconomic variables under study have no stochastic trends, hence, are stationary in levels. The result from Johansen cointegration showed a long-run relationship between real exchange rate and the five explanatory variables.
Affiliation:
- Air Force Institute of Technology Kaduna, Algeria
- Air Force Institute of Technology Kaduna, Algeria
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