Department of Economics

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End date: 2019Subject: search.filters.subject.Nigeria

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    THE RELATIONSHIP BETWEEN STOCK RETURNS AND INFLATION RATES IN NIGERIA FROM 1995 to 2014
    (International Journal of Economics, Commerce and Management (United Kingdom), 2018-02-02) Njogo, Bibiana O; Inim Victor Edet; Ohiaeri, Nnenna V; Ogboi, C
    This study focused on determining the relationship between inflation rate and stock returns using the Consumer Price Index and the All Share Index on the Nigerian Stock Exchange covering the period 1995 to 2014. The data were analyzed for evidence of co-integration and causality using Error Correction and Granger co-integration model. The Pearson Correlation result shows that, there is significant negative relationship between stock returns and inflation rates in Nigeria. Augmented Dickey Fuller result shows that the series are non-stationary in their level form and are integrated of order one. Johansen co-integration test result shows evidence of co-integration implying that there is a long run relationship between stock market returns and inflation rates in Nigeria. Furthermore, there is significant negative impact of inflation rates on stock market returns in Nigeria. The pair-wise Granger causality test shows that there is a strong unidirectional causality. Also, result from the Error Correction Model suggests that about 43% of the variations in stock returns are accounted for by inflation rates. The study recommends economic reforms that target macroeconomic stability in the country, removal of structural twist, and creation of business-friendly environment that ensures price stability as these will encourage investment in stocks in Nigeria.
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    Oil price volatility and economic growth in Nigeria
    (Scientific Press International Limited, 2019-02-02) Muhammad M. Yakubu; Benedict Akanegbu N
    One of the main causes of economic crisis in the world is Oil Price Volatility (OPV). This makes it necessary to examine the effect of oil price volatility on economic growth in an oil exporting country like Nigeria and this has a special significance. Therefore, this paper has examined empirically the effect of oil price volatility on economic growth in Nigeria using annual time series data from 1985 – 2016. The findings revealed that OPV has a negative and insignificant effect on economic growth in Nigeria. It was also found that the variables used in the study have a long-run relationship and finally no evidence of causality was found between oil price volatility and economic growth in Nigeria. The study recommends that exploring other alternatives has the potential to make the Nigerian economy stronger to face volatility crisis.