Open AccessTHE NEXUS BETWEEN THEEXTERNAL SECTOR AND INFLATION IN NIGERIA, 1985 -2018
Author(s) -
Leera Lenu Kpagih,
AUTHOR_ID,
Deekor Leelee N,
Ezebunwo Nyeche,
AUTHOR_ID,
AUTHOR_ID
Publication year - 2021
Publication title -
international journal of advanced research
Language(s) - English
Resource type - Journals
ISSN - 2320-5407
DOI - 10.21474/ijar01/13853
Subject(s) - nexus (standard) , cointegration , inflation (cosmology) , economics , macroeconomics , money supply , short run , time series , monetary economics , monetary policy , econometrics , statistics , mathematics , physics , theoretical physics , computer science , embedded system
The interaction between different economies in the global market could have impact on their key economic variables. Hence, this study set out to examine the impact of the external sector on a key economic variable in Nigeria being Inflation. The study utilized time series data from 1985 to 2018 which was subjected to Augmented Dickey Fuller Test. The next step was to subject the data to an ARDL cointegration test. The result showed that in the short run and long run external sector variables do not have any significant impact on inflation in Nigeria. The paper suggests that money supply and fiscal policy should be used to control inflation in Nigeria.