Browsing by Author "Adelere, Aanuoluwa Victor."

Now showing 1 - 1 of 1
  • No Thumbnail Available
    Item
    Open Access
    Stabilisation Policy and Macroeconomic Performance in Nigeria (1981-2020)
    (Department of Economics, Faculty of Social Sciences, Obafemi Awolowo University., 2023) Adelere, Aanuoluwa Victor.
    The study appraised fiscal policy, monetary policy and trade policy in Nigeria from 1981 - 2020, examined the role of trade policy on the relationship between stabilisation policy and macroeconomic performance in Nigeria and investigated the effect of external shock on macroeconomic performance in Nigeria. These were done with a view to determining the effect of trade policy on macroeconomic stability. Annual secondary data on gross domestic product, inflation, exchange rate, interest rate, government expenditure, trade globalisation, terms of trade, oil price were sourced from the database of World Bank, Central Bank of Nigeria, Swiss Economic Institute and Energy Information Administration for the period under study (1980-2020). Data were analysed with Autoregressive Distributed Lag (ARDL) and Vector Autoregressive (VAR) Regression Models. The regression outcome revealed that fiscal policy, monetary policy and trade policy had not been effective in stabilising the Nigerian economy as there was a wide margin between the actual results and the desired outcomes of price stability, reduced unemployment and diversification of the Nigerian economy. Also, the results showed that trade policy played a adverse role in the interaction between stabilisation policies and macroeconomic performance in Nigeria (t = -8.6028; p < 0.05). Lastly, the results showed that external shocks account for significant fluctuations in the macroeconomic performance of Nigeria as there was a wide deviation of macroeconomic performance indicators from the stability threshold (0) as revealed by the impulse response graph. The study concluded that trade policy had a negative and significant effect on the relationship between stabilisation policy and macroeconomic performance in Nigeria.