Price, Exchange Rate Volatility and Nigeria Agricultural Trade Flows- a Dynamic Analysis
Price, Exchange Rate Volatility and Nigeria Agricultural Trade Flows- a Dynamic Analysis
Abstract on Price, Exchange Rate Volatility and Nigeria Agricultural Trade Flows- a Dynamic Analysis
The essence of creating a conducive economic climate in a developing economy as ours cannot be underestimated. Hence, this research was aimed at pinpointing the inter-relationships and the dynamic effects of price, exchange rate volatility and agricultural trade flows on the Nigeria economy. Data was collected through the use of library research and literatures on the internet. The two major multiple regression analysis tools employed in data presentation are the rule of the ordinary least square (OLS) and the Econometric Views Software (EVIEWS). The research revealed that while Exchange rate volatility has a direct negative effect on agricultural trade flow, increase in export price increases export earnings, while price volatility exerts a positive effect on the level of agricultural exports. Finally, the findings of the research gave rise to useful recommendations such as the need for government to encourage production of exportable goods in order to raise the rate of exchange of the Nigeria currency.