Effectiveness of Naira Devaluation on Economic Growth in Nigeria
International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
www.ijsr.net | Open Access | Fully Refereed | Peer Reviewed International Journal

ISSN: 2319-7064

Research Paper | Economics | Nigeria | Volume 5 Issue 3, March 2016

Effectiveness of Naira Devaluation on Economic Growth in Nigeria

Osundina Kemisola C., Osundina Jacob A.

Currency devaluation as a policy instrument has been used in several countries (both developing and developed). The decision taken by monetary policy committee in November 2014 on Naira devaluation has generated a lot of arguments both for and against and its workability on an import driven economy like Nigeria. Renowned economists in the country have not had any consensus hence the need to analyse the effectiveness of currency devaluation in Nigerian economy. Exchange rate, import, export and interest rates were used as proxies for currency devaluation, while real GDP was used to measure growth. The result of the analysis which is in line with the a priori expectation shows that devaluation reduces importation, encourages exportation and increases interest rate. Inflation and unemployment are the side effects of currency devaluation in the short run according to Marshall-Lerners condition which produces a J-shaped curve of devaluation. Discretionary policies such as fiscal measures should be put in place to curb the associated increase in inflation.

Keywords: Currency Devaluation, Inflation, Unemployment, Exchange Rate, Export, Interest Rate

Edition: Volume 5 Issue 3, March 2016

Pages: 1944 - 1948

Share this Article

How to Cite this Article?

Osundina Kemisola C., Osundina Jacob A., "Effectiveness of Naira Devaluation on Economic Growth in Nigeria", International Journal of Science and Research (IJSR), https://www.ijsr.net/search_index_results_paperid.php?id=NOV161969, Volume 5 Issue 3, March 2016, 1944 - 1948

71 PDF Views | 65 PDF Downloads

Download Article PDF



Similar Articles with Keyword 'Inflation'

Informative Article, Economics, India, Volume 9 Issue 8, August 2020

Pages: 925 - 927

Impact of Oil Prices on Economic Growth of India

Ankit Chaudhary

Share this Article

Research Paper, Economics, Indonesia, Volume 5 Issue 8, August 2016

Pages: 1090 - 1096

Analysis the Influence of Internal Factor and External Factor on Yield Bonds Government in 2011-2014

Utami Yuliani, Bambang Juanda, Trias Andati

Share this Article

Research Paper, Economics, Pakistan, Volume 4 Issue 11, November 2015

Pages: 1091 - 1096

Impact of Inflation on Economic Growth in Pakistan

Ayesha Sultan, Faiza Maqbool Shah

Share this Article

Research Paper, Economics, China, Volume 5 Issue 10, October 2016

Pages: 1582 - 1587

Analysis of Interest Rate and Stock Price in Africa: Case Study of Ghanaian Listed Firms

Bridget Opoku-Agyemang, Grace Ofori-Abebrese, Benjamin Korankye

Share this Article

Research Paper, Economics, Kenya, Volume 3 Issue 10, October 2014

Pages: 1666 - 1671

Impact of Selected Macroeconomic Indicators on Inflation in Kenya

Maureen Gathuu, George Kosimbei

Share this Article

Similar Articles with Keyword 'Unemployment'

Research Paper, Economics, India, Volume 7 Issue 7, July 2018

Pages: 1184 - 1188

A Comprehensive Study of Macroeconomic Forecasting Models based on Neural Network

Aashi Agarwal, Shalini Gupta

Share this Article

Research Paper, Economics, India, Volume 3 Issue 6, June 2014

Pages: 2557 - 2559

Mahathma Gandhi National Rural Employment Gurantee Scheme - A Right to Act

Prathibha R. S.

Share this Article

Research Paper, Economics, Iraq, Volume 4 Issue 5, May 2015

Pages: 1354 - 1358

Synchronization of Inflation and Unemployment and Poverty Increase in the Iraqi Economy for (1994-2010)

Hind Ghanim Mohammed Al-Mohanna, Dr. Hanan Abdul-Khidher, Fatin Aeyed Jassim

Share this Article

Research Paper, Economics, India, Volume 4 Issue 1, January 2015

Pages: 867 - 869

The Feasibility Study on Urban Horticulture for Sustainability- A Case Study on Robe Town

Dr. Sreepada Hegde, Dr. Vijayalaxmi Hegde

Share this Article

Research Paper, Economics, Kenya, Volume 6 Issue 6, June 2017

Pages: 1980 - 1984

Effect of Inflation on Unemployment in Kenya

Moses K Macharia, Aggrey Otieno

Share this Article

Similar Articles with Keyword 'Exchange Rate'

Research Paper, Economics, China, Volume 5 Issue 12, December 2016

Pages: 863 - 867

An Empirical Analysis of a Settlement Currency in the "Silk Road Economic Belt"

Xiaobing Jiang; Ya'nan Li

Share this Article

Research Paper, Economics, Turkey, Volume 5 Issue 4, April 2016

Pages: 1888 - 1898

Long and Short Term Relationship between Real Exchange Rate, Travel Revenues and Expenditure in Turkey during the Period of 2003:1-2016:1

Nazm CATALBAS

Share this Article

Informative Article, Economics, India, Volume 9 Issue 8, August 2020

Pages: 925 - 927

Impact of Oil Prices on Economic Growth of India

Ankit Chaudhary

Share this Article

Research Paper, Economics, Indonesia, Volume 5 Issue 8, August 2016

Pages: 1090 - 1096

Analysis the Influence of Internal Factor and External Factor on Yield Bonds Government in 2011-2014

Utami Yuliani, Bambang Juanda, Trias Andati

Share this Article

Research Paper, Economics, Kenya, Volume 3 Issue 10, October 2014

Pages: 1666 - 1671

Impact of Selected Macroeconomic Indicators on Inflation in Kenya

Maureen Gathuu, George Kosimbei

Share this Article

Similar Articles with Keyword 'Export'

Research Paper, Economics, India, Volume 9 Issue 6, June 2020

Pages: 1176 - 1179

An Economics Analysis of Rose Production System in Pushkar Sub-Tehsil of Ajmer

Dr. Gayatri Tanwar

Share this Article

Research Paper, Economics, India, Volume 4 Issue 11, November 2015

Pages: 2090 - 2094

India?s Free Trade Agreements: Provisions and Prospects with reference to Agriculture Products

Dr. Pushpendra Misra, Dr. Mohd Saif Alam

Share this Article

Research Paper, Economics, Uzbekistan, Volume 8 Issue 8, August 2019

Pages: 1345 - 1348

The Main Directions of State Support and Encouragement of Small Business and Private Entrepreneurship

A'zamov Sulaymon Mamatisakovich

Share this Article

Informative Article, Economics, India, Volume 9 Issue 8, August 2020

Pages: 925 - 927

Impact of Oil Prices on Economic Growth of India

Ankit Chaudhary

Share this Article

Research Paper, Economics, India, Volume 5 Issue 6, June 2016

Pages: 1463 - 1467

Paradox of Success of Punjab Agriculture in Global Village: A Study on Challenges and Suggestions

Mnisha Shoor

Share this Article

Similar Articles with Keyword 'Interest Rate'

Research Paper, Economics, India, Volume 4 Issue 4, April 2015

Pages: 2954 - 2959

Relative Importance of Income, Interest and Price In The Determination of Demand for Money in India: A Time Series Analysis

Tarun Das

Share this Article

Research Paper, Economics, Indonesia, Volume 5 Issue 8, August 2016

Pages: 1090 - 1096

Analysis the Influence of Internal Factor and External Factor on Yield Bonds Government in 2011-2014

Utami Yuliani, Bambang Juanda, Trias Andati

Share this Article

Research Paper, Economics, Nigeria, Volume 3 Issue 11, November 2014

Pages: 2571 - 2577

Investigation of the Impact of Non-Oil Revenue on Economic Growth in Nigeria

Ude Damian Kalu, Agodi Joy E.

Share this Article

Research Paper, Economics, China, Volume 5 Issue 10, October 2016

Pages: 1582 - 1587

Analysis of Interest Rate and Stock Price in Africa: Case Study of Ghanaian Listed Firms

Bridget Opoku-Agyemang, Grace Ofori-Abebrese, Benjamin Korankye

Share this Article

Research Paper, Economics, Kenya, Volume 3 Issue 10, October 2014

Pages: 1666 - 1671

Impact of Selected Macroeconomic Indicators on Inflation in Kenya

Maureen Gathuu, George Kosimbei

Share this Article
Top