International Oil Prices, Exchange Rates, Interest Rates and External Reserves of Nigeria: The Moderating Effect of Balance of Trade
Malgit Amos Akims *
Department of Public Policy and Administration, School of Humanities and Social Sciences, Kenyatta University, Nairobi Kenya.
*Author to whom correspondence should be addressed.
Abstract
The study sought to examine the moderating effect of balance of trade on the relationship between international oil prices, exchange rates, interest rates and external reserves of Nigeria. This study emanates from the master’s thesis of the author. The analysis was based on time series data spanning from 1981 to 2014. The study was based on causal research design. The study findings reveal that balance of trade had no significant moderating effect on the relationship between international oil prices and external reserves of Nigeria. The findings of the study indicate that balance of trade had a significant moderating effect on the relationship between exchange rates and external reserves of Nigeria. Furthermore, the study findings reveal that balance of trade had no significant moderating effect on the relationship between interest rates and external reserves of Nigeria. The study therefore recommends that policies aimed at managing the exchange rate should incorporate the dynamics in the balance of trade of Nigeria.
Keywords: Diflubenzuron, Balance of trade, L. erysimi,, international oil prices, enzymes., exchange rates, interest rates, external reserves
How to Cite
Downloads
References
Romero AM. “Comparative Study” factors that foreign currency reserves in China and India. The park place economist; 2005.
Chuku AC, Akpan FU, Sam RN, Effiong LE. Oil price shocks and the dynamics of current account balances in Nigeria. OPEC.Energy Review. 2011;36(4):413-443.
Central Bank of Nigeria. Optimal foreign exchange reserves in |Nigeria. Central Bank of Nigeria; 2015.
Adam P, Rianse U, Cahyono E, Rahim M, Syarif M. Modelling of the dynamics of relationship between world crude oil prices and indonesia’s trade balance: An LVAR analysis. Journal of Economics and Sustainable Development ISSN 2222-1700; 2015.
Charles-Anyaogu Nneka B, Kuwait. Chapter of Arabian Journal of Business and Management Review. 20121;12.
Sajal G. Impact of oil price shocks on macro-economy: evidence from an oil importing developing country.International Management Institute, B-10, Qutab Institutional Area, Tara Crescent, New Delhi – 110016; 2012.
Keynes J, M. The GENERAL THEORY OF EMPLOYMENT, INTEREST AND MONEY. Basingstoke, Hampshire: Palgrave Macmillan. ISBN 0230004768; 1936.
Mankiw NG. Essentials of Economics, third edition; 2005.
Cooper D, Schindler P. Business research methods (9thed.) McGraw Hill Companies; 2009.
Wooldridge JM. Introductory econometrics: A modern approach. Cincinnati, OH: South-Western; 2003.
Paavola M. Tests of the arbitrage pricing theory using macroeconomic variables in the russian equity market. Department of Business Administration, Section of Accounting and Finance; 2006.
Verbeek M. A guide to Mordern Econometrics. (4th Ed) West Sussex: John Wiley & Sons; 2012.