Does Inflationary Dynamics Impact on Nigeria’s Economic Growth?
Background: High inflation rate is one of the economic problems facing Nigeria. As the government is unable to provide a long-term solution to this issue, inflation in the economy is inevitable. Objective: The study aimed at exploring the medium and longstanding interactions of inflationary dyna...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Department of Mass Communication, University of Nigeria
2023-04-01
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| Series: | Ianna Journal of Interdisciplinary Studies |
| Subjects: | |
| Online Access: | http://www.iannajournalofinterdisciplinarystudies.com/index.php/1/article/view/103 |
| Summary: | Background: High inflation rate is one of the economic problems facing Nigeria. As the government is unable to provide a long-term solution to this issue, inflation in the economy is inevitable.
Objective: The study aimed at exploring the medium and longstanding interactions of inflationary dynamics on Nigeria’s economic growth speed.
Methodology: Autoregressive Distribution Lag (ARDL) bound estimation procedure was utilised in the study. The researchers used the Augmented Dickey-fuller test (ADF) for the stationarity test on the variables.
Result: The study found that inflation has a detrimental long-term and short-term influence on Nigeria’s economic growth. This demonstrates that when inflation is excessively high, an economy's currency loses buying power as a result of an increase in prices.
Unique Contribution to Knowledge: The study has demonstrated the link between inflation and Nigeria’s economic growth.
Conclusion: The study concluded that inflation has a severe consequence on the Nigerian economy both in medium and longstanding periods.
Recommendations: Giving the study’s findings, the study recommended stringent monetary policy.
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| ISSN: | 2735-9883 2735-9891 |