TY - JOUR

T1 - The real exchange rate of an oil exporting economy: Empirical evidence from Nigeria.

AU - Suleiman, Hassan

AU - Muhammad, Zahid

PY - 2011/9/1

Y1 - 2011/9/1

N2 - In this study the long-run relationship between real oil price, real effectiveexchange rate and productivity differentials is examined using annual datafor Nigeria over the period 1980 to 2010. We aim to investigate whether oilprice fluctuations and productivity differentials affect the real effectiveexchange rate. The empirical results suggest that whereas real oil priceexercise a significant positive effect on the real exchange rate in the long run.Productivity differentials exercise a significant negative influence on the realexchange rate. The study noted that, the real exchange rate appreciation of2000-2010 was driven by oil prices. The findings of this study have importantimplications for exchange rate policy and are relevant to many developingeconomies where oil exports constitute a significant share of their exports

AB - In this study the long-run relationship between real oil price, real effectiveexchange rate and productivity differentials is examined using annual datafor Nigeria over the period 1980 to 2010. We aim to investigate whether oilprice fluctuations and productivity differentials affect the real effectiveexchange rate. The empirical results suggest that whereas real oil priceexercise a significant positive effect on the real exchange rate in the long run.Productivity differentials exercise a significant negative influence on the realexchange rate. The study noted that, the real exchange rate appreciation of2000-2010 was driven by oil prices. The findings of this study have importantimplications for exchange rate policy and are relevant to many developingeconomies where oil exports constitute a significant share of their exports

M3 - Article

JO - FIW Working Paper

JF - FIW Working Paper

M1 - 72

ER -