International records / OpenAlex research

A VAR Approach to Exchange Rate and Economic Growth in Nigeria

Exchange rate is very pivotal in its role in the economy of any nation especially as a result of globalization. This paper seeks to model the Nigerian economy proxied by the log of Gross Domestic Product (LGDP) and its relationship with other variables in the economy. The variables used are NGN/USD exchange rate (NAIRA), log of oil revenue (LOILREV), log of government expenditure. We estimated the model using the Vector Autoregressive (VAR) model. We tested the presence or otherwise of causality among the variables using the method of Granger. The result reveals that the optimal lag for the mo…