Ibadan Journal of the Social Sciences
Volume 4, No. 2, 2006
Pages 81-88
DOI: 10.36108/ijss/6002.40.0210
Purchasing Power Parity Exchange Rate, Misalignment and Export Growth in Nigeria
Oluremi Ogun
Departinent of Economics, University of Ibadan
Abstract
This paper analyzes the effect of real exchange rate misalignment on the growth of non-oil export in Nigeria over the period 1960-2002. The paper employs an equilibrium model of the export market and a co-integration technique for the analysis. Real exchange rate misalignment is derived on the basis of the purchasing power parity doctrine, The preliminary data analysis indicates the existence of a long-run relation between real exports and real foreign income. The final analysis shows that real exchange rate misalignment generates adverse effects on the growth of the country’s non-oil export.
Keywords: Real exchange rate, export, non-oil export and misalignment