Real Effective Exchange Rate and Non-Oil Exports Performance in Nigeria An Empirical Reflection
Victor E. Oriavwote, PhD; Samuel J. Eshenake, PhD

Abstract
This study has been on Real Effective Exchange Rate and non oil exports in Nigeria. The main objective of the study is thus to empirically evaluate the impact of the Real Effective Exchange Rate on non oil exports in Nigeria. The study covered the period between 1980 to 2014. The cointegration technique was applied to estimate the data. The result of the ADF unit root test indicates that all the variables are I(1). The result of the Johansen cointegration test suggests a long run relationship among the variables. The parsimonious ECM result indicates that the Real Effective Exchange Rate and the degree of openness have positive and significant impact on non-oil exports in Nigeria. The ARCH/GARCH results indicate that the volatility of the REER has influenced the level of non-oil exports in Nigeria. The result recommends further devaluation of the exchange rate backed by increased domestic production through a diversified production base.

Full Text: PDF