The study was conducted to evaluate the impact of inflation on economic growth in the context of an emerging market using empirical evidence from Nigeria. Using time series data spanning forty one years (1970-2011) which was obtained from the Central Bank of Nigeria (CBN) statistical bulletin volume 22, and Central Bank of Nigeria official website, the nature of the relationship existing between the focus variables - economic growth (proxied by real Gross Domestic Product, GDP) and inflation rate was explored. The Augmented Dickey Fuller (ADF) and Philip-Perron (PP) tests were used to test for the stationary of the variables while the granger causality test was employed to ascertain the direction of influence between inflation and economic growth in Nigeria.
The follow research questions guided this study: What is the trend of inflation in Nigeria? Why have all the policies used unable to reduce inflation rate to an acceptable level? What is the impact of inflation of Nigerian economic growth? Inflation growth has been the macro-economic problem in Nigeria that seems to be intractable over the years; Nigeria government has adopted various measures (both monetary and fiscal policies) to curb or reduce inflation growth to an acceptable level but all these policies seem to have no effects. This gave rise to the following research questions.
Inhaltsverzeichnis (Table of Contents)
- Background of the Study
- Statement of the Problem
- Purpose of the Study
- Research Questions
- Statement of Hypothesis
- Significance of the Study
- Limitation of the Study
- Scope of the Study
- Organization Of The Study
- REVIEW OF RELATED LITERATURE
- CONCEPTUAL FRAMEWORK
- EMPIRICAL LITERATURE
- RESEARCH METHODOLOGY
- Research Design
- Method of Data Analysis
- Model Specification
- Estimation and Validation Of The Models Unit root test
- DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
- Presentation of Data
- Analysis of Data
- Summary of Findings
- Conclusion
- Recommendation
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This study aims to determine the impact of inflation on Nigerian economic growth from 1970 to 2011, analyzing the relationship between inflation and economic growth using time series data. It seeks to identify the influence of money supply on the Nigerian economy and to provide recommendations for reducing inflation to acceptable levels.
- Impact of inflation on Nigerian economic growth
- Relationship between inflation and economic growth
- Influence of money supply on the Nigerian economy
- Effectiveness of monetary and fiscal policies in curbing inflation
- Potential utilization of inflation to manage national debt
Zusammenfassung der Kapitel (Chapter Summaries)
Background of the Study: This chapter introduces the pervasive issue of inflation in Nigeria and its concerning impact on economic growth. It cites various definitions of inflation from prominent economists like Samuelson and Onwukwe, highlighting the detrimental effects of rising prices on the purchasing power of money and the overall economy. The chapter establishes the necessity for a critical analysis of inflation's impact on Nigeria's economic growth, setting the stage for the subsequent research.
REVIEW OF RELATED LITERATURE: This chapter delves into existing literature concerning inflation, exploring its causes and effects. It lays the groundwork for the study's theoretical framework by examining various perspectives on inflation and its connection to economic growth, setting the context for the empirical analysis to follow. It also provides a conceptual framework for understanding inflation within the Nigerian context.
RESEARCH METHODOLOGY: This chapter outlines the research design, data analysis methods, model specification, and validation techniques employed in the study. It details the use of time series data, spanning 1970-2011, obtained from the Central Bank of Nigeria. The chapter explicitly states the statistical methods used, such as the Augmented Dickey Fuller (ADF) and Philip-Perron (PP) tests for stationarity and the Granger causality test to determine the direction of influence between inflation and economic growth. This section provides the methodological foundation for interpreting the study's findings.
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS: This chapter presents and analyzes the data collected, focusing on the relationship between inflation and economic growth in Nigeria. It showcases the findings derived from the statistical analysis described in the methodology chapter, revealing the statistical significance (or lack thereof) of the relationships explored. This chapter bridges the gap between the methodology and the concluding interpretations.
Schlüsselwörter (Keywords)
Inflation, economic growth, Nigeria, monetary policy, fiscal policy, money supply, time series analysis, Granger causality, ADF test, PP test, real GDP.
Frequently Asked Questions: A Comprehensive Language Preview
What is the main topic of this study?
This study examines the impact of inflation on Nigerian economic growth from 1970 to 2011. It analyzes the relationship between inflation and economic growth using time series data, and explores the influence of money supply on the Nigerian economy.
What are the key objectives of the research?
The primary objective is to determine the impact of inflation on Nigerian economic growth. Further objectives include identifying the relationship between inflation and economic growth, understanding the influence of money supply, and evaluating the effectiveness of monetary and fiscal policies in controlling inflation. The potential of using inflation to manage national debt is also explored.
What is the scope of the study?
The study covers the period from 1970 to 2011, utilizing time series data from the Central Bank of Nigeria. It focuses specifically on the Nigerian economy and the impact of inflation within that context.
What research methods were employed?
The research employs time series analysis. Specific methods include the Augmented Dickey Fuller (ADF) and Philip-Perron (PP) tests for stationarity, and the Granger causality test to determine the direction of influence between inflation and economic growth.
What are the key themes explored in the research?
Key themes include the impact of inflation on economic growth, the relationship between inflation and economic growth, the role of money supply, the effectiveness of monetary and fiscal policies in managing inflation, and the potential use of inflation for national debt management.
What data is used in the study?
The study uses time series data from the Central Bank of Nigeria, covering the period from 1970 to 2011.
What are the main chapters of the study?
The study includes chapters on Background of the Study, Statement of the Problem, Purpose of the Study, Research Questions, Statement of Hypothesis, Significance of the Study, Limitation of the Study, Scope of the Study, Organization of the Study, Review of Related Literature (including Conceptual Framework and Empirical Literature), Research Methodology (including Research Design, Method of Data Analysis, Model Specification, and Estimation and Validation of Models), Data Presentation, Analysis and Discussion of Findings, Summary of Findings, Conclusion, and Recommendation.
What are the key findings (in summary)?
Detailed findings are presented in the "Data Presentation, Analysis and Discussion of Findings" chapter. The study aims to reveal the statistical significance of the relationships between inflation and economic growth, money supply, and the effectiveness of various policies.
What are the keywords associated with this study?
Keywords include: Inflation, economic growth, Nigeria, monetary policy, fiscal policy, money supply, time series analysis, Granger causality, ADF test, PP test, real GDP.
What are the limitations of this study?
Limitations are specified in the "Limitation of the Study" chapter, which would need to be consulted for specifics.
- Quote paper
- Micah Effiong (Author), 2016, Impact of inflation on economic growth in Nigeria in the context of an emerging market, Munich, GRIN Verlag, https://www.grin.com/document/510336
