Authors: David Umoru1 & Janet Achikare Onimawo2
1Faculty of Arts, Mgt. & Social Sciences, Edo University, Iyamho, Edo State, Nigeria
2Department of Public Administration, Ambrose Alli University, Ekpoma, Nigeria
Abstract: This study examines the impact of oil price shocks on economic growth rate in Nigeria using the impulse response functions and forecast error variance decomposition on quarterly data from 2000 to 2016. This study finds that fluctuations in oil prices cause swings in GDP growth rate in Nigeria. The fluctuation in oil prices also depreciates Naira exchange rate. The country should branch out its revenue sources to shield the dangle effect of the fluctuation in prices of oil.
Keywords: Growth Rate, Shocks, Oil Price
Alley, I., Asekomeh, A., Mobalaji, H., & Adeniran, A. (2014). Oil price shocks and Nigerian economic growth. European Scientific Journal, 10(19), 1857 – 7881.
Ademola, A.(1998). Consequences of oil price shocks on the economic growth of the Nigerian economy: An econometric analysis. Journal on Social Economics, 3(3), 2-4, 6-7.
Adeniyi, O. A. (2010). Oil Price Shocks and Economic Growth in Nigeria: Are Thresholds Important? Department of Economics and Business Studies, Redeemers University
Adeniyi, O., Omisakin, O., Yaqub, J., & Oyinlola, A. (2012). Oil Price-Exchange Rate Nexus in Nigeria: Further Evidence from the Nigerian Economy. International Journal of Humanities and Social Science, 2, (8).
Agbede, M.O. (2013). Growth Implications of Oil Price Shock in Nigeria. Journal of Emerging Trends in Economics and Management Sciences, 4(3), 343-349.
Aliyu, S. U. R. (2009). Impact of Oil Price Shock and Exchange Rate Volatility on Economic Growth in Nigeria: An Empirical Investigation. Research Journal of International Studies
Alley, I., Asekomeh, A., Mobolaji, H., & Adeniran, Y.A. (2014). Oil Price Shocks and Nigerian Economic Growth. European Scientific Journal, 10(19), 375-391
Asaolu, T., & Ilo, B. (2012). The Nigerian Stock Market and Oil Price: A Cointegration Analysis. Kuwait Chapter of Arabian Journal of Business and Management Review, 1(5).
Ayadi, O. F. (2005). Oil price fluctuations and the Nigerian economy. OPEC Review, September (6) 199-217
Balke, N. S., Stephen, P. A., Brown, W., and Mine Yucel (2010). “Oil Price Shocks and the U.S. Economy: Where Does the Asymmetry Originate?” Working paper, Federal Reserve Bank of Dallas.
Jimenez-Rodriquez, R., & Sanchez, M. (2003). Oil price shocks and real GDP growth empirical evidence for some OECD countries.
Jin, G. (2008). The Impact of Oil Price Shock and Exchange Rate Volatility on Economic Growth: A Comparative Analysis for Russia Japan and China. Research Journal of International Studies, 8, 98-111.
Olomola, H., & Adejumo, K. (2006). Oil price shock and macroeconomic activities in Nigeria’ International Research Journal of Finance and Economics, 3.
Okonju, C. (2009). Oil price fluctuations and its effects on growth. Journal of Historical Economics, 2(5), 15-18.
Oriakhi, D. E., & Osazee, I. D. (2013). Oil price volatility and its consequences on the growth of the Nigerian economy: An examination (1970-2010). Asian Economic andFinancial Review, 3(5), 683-702.
Wilson, A., David, U., Inyiama, O., & Beatrice, E. (2014). Oil price volatility and economic development: Stylized evidence in Nigeria. Journal of Economics and International Finance, 6(6), 125 -133.
International Journal of Social Sciences & Educational Studies
ISSN 2520-0968 (Online), ISSN 2409-1294 (Print), September 2017, Vol.4, No.1