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What is Real Exchange Rate & Consumption in Nigeria about?

This dissertation examines the relationship between real exchange rate and domestic consumption in Nigeria from 1981 to 2016 using the Smooth Transition Autoregressive model. It finds a nonlinear linkage where domestic consumption influences real exchange rate regime shifts, and identifies a significant negative relationship in the nonlinear model. The study suggests that fiscal and monetary policies should focus on strengthening domestic production to reduce imports in consumption.

Author

ANYI

Language

EN