- The Complete Research Material is averagely 50 pages long and it is in Ms Word Format, it has 1-5 Chapters.
- Major Attributes are Abstract, All Chapters, Figures, Appendix, References.
- Study Level: BTech, BSc, BEng, BA, HND, ND or NCE.
- Full Access Fee: ₦4,000
Get the complete project »

ABSTRACT
This paper “exchange rate fluctuation and export performances in Nigeria” aim to determine the effect of foreign exchange dynamism on the country’s export performance from 1961-2011. Research results from the economic tool of regression analysis obtained shows that fluctuations in the naira exchange rate affect manufacturing and agricultural exports more than it affects oil export. To reduce the impact of this fluctuations on these export, monetary authorities in Nigeria should stabilize the naira exchange rate through monetary and fiscal policies, exporters should take advantage of the futures worked to eliminate the negative effects of this fluctuations on export income and performance, and fiscal and monetary policies should be initiated by the government to increase local production to meet local consumption, reducing foreign exchange demand for import consumption and reduce pressure on the naira exchange rate.
CHAPTER ONE
1.0 BACKGROUND OF THE STUDY
Exchange rate is a prominent determinant of world trade, receiving much
attention in the context of global imbalances. The subject of exchange
rate fluctuation came to be a topical issue in Nigeria because it is the
goal of every economy to have a stable rate of exchange with its
trading partners. In Nigeria, this goal was not realized in spite of the
fact that they embarked on the devaluation of the naira and adopted the
Structural Adjustment Program (SAP) in 1986. The failure to realize
this goal subjected the Nigerian manufacturing sector to the challenge
of a constantly fluctuating exchange rate.
One objective of the SAP was the restructuring of the production base of
the economy with a positive bias for the production of agricultural
export. The foreign exchange reforms that facilitated a cumulative
depreciation of the effective exchange rate were expected to increase
the domestic prices of agricultural exports and hence boost domestic
production.
Empirically many researchers like Oyejide (1986), Ihimodu (1993) and
World Bank (1994) analyzed the effects of cumulative depreciation of the
effective exchange rate, as it resulted in the change in the structure
and value of Nigeria’s exports. The depreciation increased the prices of
agricultural exports and the result indicated a worked increase in the
volume of agricultural exports over the years. However, very little
achievements were made in stabilizing the rate exchange. As a
consequence, the problem of exchange rate fluctuations in Nigeria
persists up till date.
Fluctuation is a major constraint on development of an economy, making
planning more problematic and investment more risky. For instance,
fluctuation in exchange rate may reduce the activities of potential
investors in Nigeria because it increases uncertainty over the returns
of a given investment. Potential investors will invest in a foreign
location only if the expected returns are high enough to cover for the
currency risk (Gerado, 2002). Risk in international commodity trade
usually arises from two main sources; changes in world prices or
fluctuation in exchange rate. Therefore, understanding the behavior of
the exchange rate is very important for many reasons. First, the
relationship between a country’s exchange rate and economic growth via
trade is a crucial issue from both the descriptive and policy
prescription perspective. As Edwards (1994; 61) asserts; “it is not an
overstatement to say that the issue of real exchange rate behavior now
occupies a central rate in policy evaluation and design”. A country’s
exchange rate behavior is an important determinant of the growth rate of
its exports and it serves as a measure of its international
competitiveness (Bath and Amusa, 2003), Chukwu (2007)observed the
instability exchange rate as a determinant of trade in Nigeria; having a
positive influence on export trade and at other times a negative
influence. This suggests an erratic change in its value having a
long-run effect on export and economic growth. This research aims to
determine the impact of fluctuations in the naira exchange rate on
Nigerian’s export performance.
1.1 STATEMENT OF THE PROBLEM
Despite the existence of literature on the influence of exchange rate
fluctuations on exports in Nigeria, theoretical and empirical works on
the subject are yet to produce a consensus. The two major trends in the
literature review indicate thus; the first argues that exchange rate
fluctuations represent uncertainty and will impose costs on risk-
adverse economic agents which as a result respond by favoring domestic-
foreign trade just at the margin. In other words, it might hamper the
growth of international trade (Chowdhury, 1993, Cushiman, 1983, 1988
Kenen and Rodrik, 1986). The second strand of literature argues that if
the economic agents are sufficiently risk lovers, an increase in
exchange rate raises the expected marginal utility of export revenue and
thus induces them to increase their exports in order to maximize their
revenue. Therefore, exchange rate fluctuations may actually catalyze
trade flows (De Grauwe: 1988, IMF: 1984, Klein: 1990 and Chambers, R. G.
and Just, R. E. (1991). Only few attempts have been made to examine
them for developing countries, Nigeria inclusive because of the lack of
reliable time –series data. The available instances include Vergil
(2002) for turkey and Bah and AMUSA (2003) and Takendesa, (2005) for
South Africa, Ajayi (1988), Adubi, A. A. and Okunmadewa, F. (1999),
Osagie (1985) for Nigeria.
The research will differ from the existing ones as it will carefully
examine exchange rate fluctuations and export for both the oil sector
and non-oil sectors. Previous studies assessed only the influence of
exchange rate fluctuation on either oil export, neglecting the non-oil
export or on non-oil export alone excluding the oil export. They failed
to ascertain its effect on both the oil and non-oil (like agricultural
and manufacturing) sectors export. Analyzing only oil exports or non-oil
exports exclusively may not really give a value judgment and conclusion
on the effect of exchange rate fluctuations and export performances in
Nigeria. Furthermore, the study will provide deep insight into the
relationship existing between exchange rate fluctuations and exports by
adopting a popular econometric methodology for a measure of fluctuations
which is Generalized Autoregressive Conditional Heteroscedasticity
(GARCH) modeling technique, which was not used by some of the previous
studies.
In view of the above problem, the following research questions are raised:
1. How does oil export respond to exchange rate fluctuation?
2. How does manufacturing export respond to exchange rate fluctuation?
3. How does agricultural export respond to exchange rate fluctuation?
1.2 OBJECTIVES OF THE STUDY
The broad objective of the study is to determine impact of exchange rate
fluctuations on export performance in Nigeria. Specifically, the study
addresses the following objectives:
1. To trace how oil export respond to exchange rate fluctuation.
2. To trace how manufacturing export respond to exchange rate fluctuations.
3. To trace how agricultural export respond to exchange rate fluctuation.
1.3 SIGNIFICANCE OF THE STUDY
This research will serve as a future guide to the policy makers in the
formulation of better and efficient policy options for managing exchange
rate fluctuations in Nigeria. Also, the research will be of immense
help to the general economy, as it will provide possible measures the
monetary authority could adopt in order to maintain exchange rate
stability so that exchange rate can influence importantly export growth,
consumption, resource allocation, employment and private and foreign
investments as research has shown. Above all, it will add to the
existing literature thus, providing relevant information that could
guide further researchers on this subject.
1.4 SCOPE OR DELIMITATION OF THE STUDY
This study intends to look at the export performances and exchange rate
fluctuations in Nigeria. Thus, it is restricted to tracing the responses
of some export components to shock to the exchange rate over some
periods; hence it omitted the test of hypothesis. The study covers a
period of 51 years that is 1961-2011. This range is chosen to give room
for enough degree of freedom that will ensure reliable estimates.
You either get what you want or your money back. T&C Apply

You can find more project topics easily, just search
-
SIMILAR ECONOMICS FINAL YEAR PROJECT RESEARCH TOPICS
-
1. EMPIRICAL INVESTIGATION OF THE IMPACT OF GOVERNMENT EDUCATION SPENDING ON ECONOMIC GROWTH (1981-2012)
» ABSTRACT The aim of the study is to critically investigate the impact of government education expenditure on economic growth in Nigeria. The Real Gros...Continue Reading »Item Type & Format: Project Material - Ms Word | 50 pages |
Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
2. EXCHANGE RATE VARIATIONS AND MIGRANTS’ REMITTANCES TO NIGERIA
» CHAPTER ONE INTRODUCTION 1.1 Background of the Study International economic integration in the early 21st century is conventionally thought ofas incre...Continue Reading »Item Type & Format: Project Material - Ms Word | 86 pages |
Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
3. EFFECT OF TREASURY SINGLE ACCOUNT ON FRAUD DETECTION AND PREVENTION IN NIGERIA (A CASE STUDY OF NIGERIA PORT AUTHORITY)
» CHAPTER ONE INTRODUCTION 1.1. Background of the study A lot has been said on Treasury single account (TSA) since its conception and implementation in ...Continue Reading »Item Type & Format: Project Material - Ms Word | 75 pages |
Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
4. FOREIGN DIRECT INVESTMENT AND THE MANUFACTURING SECTOR IN NIGERIA
» CHAPTER ONE INTRODUCTION Economists are quick to support the free flow of capital across national borders because it allows capital to seek out the hi...Continue Reading »Item Type & Format: Project Material - Ms Word | 70 pages |
Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
5. OIL PRICE SHOCKS AND OIL SECTOR STOCK PRICES IN NIGERIA
» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF STUDY The changing international oil market has posed great concerns for Nigeria’s fiscal outlook. Th...Continue Reading »Item Type & Format: Project Material - Ms Word | 76 pages |
Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
6. THE EFFECT OF BANK VERIFICATION NUMBER IN NIGERIA ECONOMY
» CHAPTER ONE INTRODUCTION 1.1 Background of the Study In banking, security is paramount to protect depositors’ funds. It is in the light of this ...Continue Reading »Item Type & Format: Project Material - Ms Word | 50 pages |
Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
7. NATIONAL SAVINGS AND ECONOMIC GROWTH IN NIGERIA
» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Capital accumulation as a component of economic growth and development in any society is the proc...Continue Reading »Item Type & Format: Project Material - Ms Word | 59 pages |
Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
8. IMPACT OF INDUSTRIALIZATION ON RURAL DEVELOPMENT IN NIGERIA CASE STUDY OF GBOKI LOCAL GOVERNMENT AREA OF CROSS RIVER STATE
» Chapter one Introduction Background to study More than 70% of Nigerians live in the rural areas, hence there is a need for the government to take the ...Continue Reading »Item Type & Format: Project Material - Ms Word | 98 pages |
Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
9. IMPACT OF INTEREST RATE DEREGULATION REGIME ON THE NIGERIAN ECONOMY'S REAL (INDUSTRIAL) SECTOR
» ABSTRACTThe banking sector is quite key to economic growth. More key is the cost of banking as it determines mobilization of savings, level of investm...Continue Reading »Item Type & Format: Project Material - Ms Word | 50 pages |
Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
10. THE EFFECT OF GOVERNMENT FUNDING ON THE PROMOTION AND DEVELOPMENT OF SME ENTERPRISES IN NIGERIA
» CHAPTER ONE 1.0 INTRODUCTION The dynamic role of small and medium enterprises as engine of growth in developing countries has been recognized as obser...Continue Reading »Item Type & Format: Project Material - Ms Word | 56 pages |
Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT