Real Exchange Rate and Agricultural Exports in Nigeria
Read the full paper (PDF)Abstract
This paper empirically investigates the link between RER and agricultural exports. The main objective is thus to empirically establish the impact of RER on agricultural exports in Nigeria. This is significant since agricultural export has not improved significantly despite various exchange rate policy. The ECM was used to analyze the data. The result indicates that RER lagged by 1 period has a positive and significant impact on agricultural exports. The money supply has a positive and significant impact on agricultural exports. Interest rate lagged by one period has a negative and significant impact on agricultural exports. The one period lagged inflation rate has a positive and significant impact on agricultural exports. The ECM shows that the adjustment is satisfactory. Improved production of agricultural products for exports through public private partnership was recommended.