International records / OpenAlex research

Exchange Rate and Trade Balance: The Case for J-curve Effect in Nigeria

The Nigerian currency has since the introduction of the Structural Adjustment Programme (SAP) of 1986 has been continually depreciated except for a few years. This study investigated the “J-curve” effect which is the nexus between trade balance (TB) and the real effective exchange rate (REER) in Nigeria. It adopted Johansen Cointegration following the outcome of the preliminary Augmented Dickey-Fuller (ADF) test for stationarity of the data series in the model from 1981 to 2016. The Granger causality and the Impulse Response Function tests were also deployed. The post-estimation diagnostic val…