THE IMPACT OF OIL PRICE INSTABILITY ON ECONOMIC GROWTH: EVIDENCE FROM NIGERIA
Öz
In this study, the effects of oil price instability on economic growth between 1981 and 2015 are investigated. The considered Vector Error Correction model shows that oil price and real effective exchange rate were positively related to economic growth, whereas government expenditure and inflation had a negative relationship. Oil price Granger caused economic growth and exchange rate, while exchange rate Granger caused inflation. The variance decomposition result indicates that oil price instability is the largest source of variation in economic growth and exchange rates, while the largest source of variation in the inflation rate is exchange rate followed by oil price.
Anahtar Kelimeler
Kaynakça
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