Oil Price Shocks and Macroeconomic Performance in Nigeria

This paper examines the macroeconomic implications of symmetric and asymmetric oil price and oil revenue shocks in Nigeria, using the vector autore- gressive (var) estimation technique. The paper finds that both positive and nega- tive oil price shocks influence real government expenditure only in t...

Descripción completa

Guardado en:
Detalles Bibliográficos
Autores principales: Simeon Oludiran Akinley, Stephen Ekpo
Formato: Artículo científico
Publicado: Centro de Investigación y Docencia Económicas, A.C. 2013
Materias:
Economía y Finanzas
Oil price shocks
oil revenue
macroeconomic performance
var
Acceso en línea:http://www.redalyc.org/articulo.oa?id=32329695008
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-010&d=32329695008oai
Aporte de:
Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO) de Consejo Latinoamericano de Ciencias Sociales
id I16-R122-32329695008oai
record_format dspace
institution Consejo Latinoamericano de Ciencias Sociales
institution_str I-16
repository_str R-122
collection Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO)
topic Economía y Finanzas
Oil price shocks
oil revenue
macroeconomic performance
var
spellingShingle Economía y Finanzas
Oil price shocks
oil revenue
macroeconomic performance
var
Simeon Oludiran Akinley
Stephen Ekpo
Oil Price Shocks and Macroeconomic Performance in Nigeria
topic_facet Economía y Finanzas
Oil price shocks
oil revenue
macroeconomic performance
var
description This paper examines the macroeconomic implications of symmetric and asymmetric oil price and oil revenue shocks in Nigeria, using the vector autore- gressive (var) estimation technique. The paper finds that both positive and nega- tive oil price shocks influence real government expenditure only in the long run rather than in the short run, while examining positive and negative shocks to ex- ternal reserves revealed stronger implications for expenditure in the long run, with positive rather than negative oil price shocks having stronger short and long run effects on real gdp, and therefore triggering inflationary pressure and domes- tic currency depreciation as importation rises. This implies that the country ex- hibits the Dutch disease syndrome in the short and long run. However, results obtained show that oil revenue shocks are capable of impeding economic growth only in the long run while raising general price levels marginally in the short run after the initial shocks, with evidence of serious threat to interest rate and the domestic currency in the short and medium term, as the volume of imports in- creases significantly along with the external reserves. Findings on the asymmet- ric effects of oil revenue shocks revealed that positive shocks to oil revenue stimu- late expansionary fiscal posture in the Nigerian economy in the short run in line with theory, thereby creating inflationary pressure and domestic currency depre- ciation. The combined implications of these discoveries suggest the need for prop- er coordination of fiscal and monetary policy for sustainable macroeconomic sta- bility to be achieved.
format Artículo científico
Artículo científico
author Simeon Oludiran Akinley
Stephen Ekpo
author_facet Simeon Oludiran Akinley
Stephen Ekpo
author_sort Simeon Oludiran Akinley
title Oil Price Shocks and Macroeconomic Performance in Nigeria
title_short Oil Price Shocks and Macroeconomic Performance in Nigeria
title_full Oil Price Shocks and Macroeconomic Performance in Nigeria
title_fullStr Oil Price Shocks and Macroeconomic Performance in Nigeria
title_full_unstemmed Oil Price Shocks and Macroeconomic Performance in Nigeria
title_sort oil price shocks and macroeconomic performance in nigeria
publisher Centro de Investigación y Docencia Económicas, A.C.
publishDate 2013
url http://www.redalyc.org/articulo.oa?id=32329695008
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-010&d=32329695008oai
work_keys_str_mv AT simeonoludiranakinley oilpriceshocksandmacroeconomicperformanceinnigeria
AT stephenekpo oilpriceshocksandmacroeconomicperformanceinnigeria
bdutipo_str Repositorios
_version_ 1764820422075875333

Ejemplares similares