Evidence of Inflation-Poverty Causality in Nigeria based on the Toda-Yamamoto Dynamic Causality Test.
Purpose: One of the known global consequences of inflation is increasing and causing poverty. Most studies follow suit and empirically investigated the effect of inflation on poverty without taking into cognizance that poverty might as well cause inflation. The main aim of this study is to investiga...
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| Format: | Article |
| Language: | English |
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CSRC Publishing
2020-03-01
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| Series: | Journal of Business and Social Review in Emerging Economies |
| Subjects: | |
| Online Access: | https://publishing.globalcsrc.org/ojs/index.php/jbsee/article/view/993 |
| _version_ | 1818060760162500608 |
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| author | Ibrahim Abdulhamid Danlami Mohamad Helmi Hidthiir Sallahuddin Hassan |
| author_facet | Ibrahim Abdulhamid Danlami Mohamad Helmi Hidthiir Sallahuddin Hassan |
| author_sort | Ibrahim Abdulhamid Danlami |
| collection | DOAJ |
| description | Purpose: One of the known global consequences of inflation is increasing and causing poverty. Most studies follow suit and empirically investigated the effect of inflation on poverty without taking into cognizance that poverty might as well cause inflation. The main aim of this study is to investigate the nature of causality between inflation and poverty in Nigeria.
Methodology This research work employs the famous Toda-Yamamoto causality test to investigate the nature of causality between inflation and poverty in Nigeria for the period 1980-2016, with money supply and exchange rate as control variables.
Findings: The results reveal that there is bidirectional causality between inflation and poverty, none of the variables cause money supply and none of them cause exchanges rate.
Implication: Even though the money supply does not cause poverty directly, it does cause inflation, and inflation in turns causes poverty. Also, the exchange rate does not cause inflation directly, but it does cause poverty, and at the same time, poverty causes inflation. Therefore, the study calls the attention of the policymakers to be cautious in making policies concerning money supply and local currency devaluations (exchange rate) as they cause both inflation and poverty directly and indirectly, consequently, they affect the societal welfare in general. |
| first_indexed | 2024-12-10T13:37:32Z |
| format | Article |
| id | doaj.art-acac1982c117422f973d82724b339b2d |
| institution | Directory Open Access Journal |
| issn | 2519-089X 2519-0326 |
| language | English |
| last_indexed | 2024-12-10T13:37:32Z |
| publishDate | 2020-03-01 |
| publisher | CSRC Publishing |
| record_format | Article |
| series | Journal of Business and Social Review in Emerging Economies |
| spelling | doaj.art-acac1982c117422f973d82724b339b2d2022-12-22T01:46:46ZengCSRC PublishingJournal of Business and Social Review in Emerging Economies2519-089X2519-03262020-03-016110.26710/jbsee.v6i1.993Evidence of Inflation-Poverty Causality in Nigeria based on the Toda-Yamamoto Dynamic Causality Test.Ibrahim Abdulhamid Danlami0Mohamad Helmi HidthiirSallahuddin HassanMrPurpose: One of the known global consequences of inflation is increasing and causing poverty. Most studies follow suit and empirically investigated the effect of inflation on poverty without taking into cognizance that poverty might as well cause inflation. The main aim of this study is to investigate the nature of causality between inflation and poverty in Nigeria. Methodology This research work employs the famous Toda-Yamamoto causality test to investigate the nature of causality between inflation and poverty in Nigeria for the period 1980-2016, with money supply and exchange rate as control variables. Findings: The results reveal that there is bidirectional causality between inflation and poverty, none of the variables cause money supply and none of them cause exchanges rate. Implication: Even though the money supply does not cause poverty directly, it does cause inflation, and inflation in turns causes poverty. Also, the exchange rate does not cause inflation directly, but it does cause poverty, and at the same time, poverty causes inflation. Therefore, the study calls the attention of the policymakers to be cautious in making policies concerning money supply and local currency devaluations (exchange rate) as they cause both inflation and poverty directly and indirectly, consequently, they affect the societal welfare in general.https://publishing.globalcsrc.org/ojs/index.php/jbsee/article/view/993Inflation, Money Supply, Nigeria, Poverty, Toda-Yamamoto Causality. |
| spellingShingle | Ibrahim Abdulhamid Danlami Mohamad Helmi Hidthiir Sallahuddin Hassan Evidence of Inflation-Poverty Causality in Nigeria based on the Toda-Yamamoto Dynamic Causality Test. Journal of Business and Social Review in Emerging Economies Inflation, Money Supply, Nigeria, Poverty, Toda-Yamamoto Causality. |
| title | Evidence of Inflation-Poverty Causality in Nigeria based on the Toda-Yamamoto Dynamic Causality Test. |
| title_full | Evidence of Inflation-Poverty Causality in Nigeria based on the Toda-Yamamoto Dynamic Causality Test. |
| title_fullStr | Evidence of Inflation-Poverty Causality in Nigeria based on the Toda-Yamamoto Dynamic Causality Test. |
| title_full_unstemmed | Evidence of Inflation-Poverty Causality in Nigeria based on the Toda-Yamamoto Dynamic Causality Test. |
| title_short | Evidence of Inflation-Poverty Causality in Nigeria based on the Toda-Yamamoto Dynamic Causality Test. |
| title_sort | evidence of inflation poverty causality in nigeria based on the toda yamamoto dynamic causality test |
| topic | Inflation, Money Supply, Nigeria, Poverty, Toda-Yamamoto Causality. |
| url | https://publishing.globalcsrc.org/ojs/index.php/jbsee/article/view/993 |
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