Exploring the Dynamics of Economic Instability: An Analysis of the Interplay between Consumer Spending, Consumer Confidence, and Macroeconomic Factors
This study empirically evaluates the effect of consumer confidence on consumer spending in Nigeria. Relatively little attention has been paid to the existence of a long-run relationship between consumer confidence and consumer spending in Nigeria, and this study aims to contribute to the existing li...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
World Scientific Publishing Co. Pte Ltd.
2024-03-01
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| Series: | International Journal of Empirical Economics |
| Subjects: | |
| Online Access: | https://www.worldscientific.com/doi/10.1142/S2810943024500033 |
| _version_ | 1797232550574292992 |
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| author | Ayodele Idowu Munem Ahmad Chowdhury Hafsa Rahman Nijhum Bello Mistura Eniola |
| author_facet | Ayodele Idowu Munem Ahmad Chowdhury Hafsa Rahman Nijhum Bello Mistura Eniola |
| author_sort | Ayodele Idowu |
| collection | DOAJ |
| description | This study empirically evaluates the effect of consumer confidence on consumer spending in Nigeria. Relatively little attention has been paid to the existence of a long-run relationship between consumer confidence and consumer spending in Nigeria, and this study aims to contribute to the existing literature in this regard by utilising quarterly data spanning from 2009 to 2023. Examining the relationship through the autoregressive distributed lag (ARDL) model, it was found that consumer confidence, money supply, and inflation have a significantly positive impact on consumer spending, while interest rates possess an adverse relationship with consumer spending in Nigeria in the long run. The findings of the study recommend that good infrastructure, ease of doing business, and reduction of tax rate on everyday purchasing are key contributors to consumers’ optimism. Additionally, efficient responses to economic shocks and effective policy reformation according to the shift of the dynamic financial world are also crucial to making the economy well-run and maintaining the level of consumers’ confidence. |
| first_indexed | 2024-04-24T16:02:04Z |
| format | Article |
| id | doaj.art-c325ca17c4c2400d83f7825e7f03a481 |
| institution | Directory Open Access Journal |
| issn | 2810-9430 2810-9449 |
| language | English |
| last_indexed | 2024-04-24T16:02:04Z |
| publishDate | 2024-03-01 |
| publisher | World Scientific Publishing Co. Pte Ltd. |
| record_format | Article |
| series | International Journal of Empirical Economics |
| spelling | doaj.art-c325ca17c4c2400d83f7825e7f03a4812024-04-01T07:12:50ZengWorld Scientific Publishing Co. Pte Ltd.International Journal of Empirical Economics2810-94302810-94492024-03-01030110.1142/S2810943024500033Exploring the Dynamics of Economic Instability: An Analysis of the Interplay between Consumer Spending, Consumer Confidence, and Macroeconomic FactorsAyodele Idowu0Munem Ahmad Chowdhury1Hafsa Rahman Nijhum2Bello Mistura Eniola3Federal University of Agriculture, Abeokuta, NigeriaBangladesh Institute of Social Research, Dhaka, BangladeshIFIC Bank, Chandpur, Chattogram, BangladeshTai Solarin University of Education, NigeriaThis study empirically evaluates the effect of consumer confidence on consumer spending in Nigeria. Relatively little attention has been paid to the existence of a long-run relationship between consumer confidence and consumer spending in Nigeria, and this study aims to contribute to the existing literature in this regard by utilising quarterly data spanning from 2009 to 2023. Examining the relationship through the autoregressive distributed lag (ARDL) model, it was found that consumer confidence, money supply, and inflation have a significantly positive impact on consumer spending, while interest rates possess an adverse relationship with consumer spending in Nigeria in the long run. The findings of the study recommend that good infrastructure, ease of doing business, and reduction of tax rate on everyday purchasing are key contributors to consumers’ optimism. Additionally, efficient responses to economic shocks and effective policy reformation according to the shift of the dynamic financial world are also crucial to making the economy well-run and maintaining the level of consumers’ confidence.https://www.worldscientific.com/doi/10.1142/S2810943024500033Consumer spendingconsumer confidencemoney supplyinflationARDL |
| spellingShingle | Ayodele Idowu Munem Ahmad Chowdhury Hafsa Rahman Nijhum Bello Mistura Eniola Exploring the Dynamics of Economic Instability: An Analysis of the Interplay between Consumer Spending, Consumer Confidence, and Macroeconomic Factors International Journal of Empirical Economics Consumer spending consumer confidence money supply inflation ARDL |
| title | Exploring the Dynamics of Economic Instability: An Analysis of the Interplay between Consumer Spending, Consumer Confidence, and Macroeconomic Factors |
| title_full | Exploring the Dynamics of Economic Instability: An Analysis of the Interplay between Consumer Spending, Consumer Confidence, and Macroeconomic Factors |
| title_fullStr | Exploring the Dynamics of Economic Instability: An Analysis of the Interplay between Consumer Spending, Consumer Confidence, and Macroeconomic Factors |
| title_full_unstemmed | Exploring the Dynamics of Economic Instability: An Analysis of the Interplay between Consumer Spending, Consumer Confidence, and Macroeconomic Factors |
| title_short | Exploring the Dynamics of Economic Instability: An Analysis of the Interplay between Consumer Spending, Consumer Confidence, and Macroeconomic Factors |
| title_sort | exploring the dynamics of economic instability an analysis of the interplay between consumer spending consumer confidence and macroeconomic factors |
| topic | Consumer spending consumer confidence money supply inflation ARDL |
| url | https://www.worldscientific.com/doi/10.1142/S2810943024500033 |
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