Skip to content
Research Article Open access CC BY 4.0

Inflationary Effect on Nigeria Economic Growth: The ARDL Bound Test Approach

B. U. K. Farouk, I. J. David, N. S. Agog

Journal of Economics, Management and Trade · pp. 25–36 · Published 12 Aug 2021

10.9734/jemt/2021/v27i630349

Abstract

The expectation of any country is to experience a high output but in the presence of increasing inflation such expectation becomes blurring because high inflation is a sign of a low working economic system. In this research the impact of inflation rate (InfR) on Nigeria economic growth (EcoG) is studied for the period of 1986 to 2018 using an Autoregressive Distributed Lag (ARDL) Bounds test approach to determine the co-integration existence between InfR and EcoG and determine the long run effect through the approach of Error Correction Model (ECM). The results obtained showed that an ARDL (2, 2) model was the best fitted model for the sampled data based on the smallest Akaike’s Information Criterion (AIC) value obtained. Also, it was found that InfR significantly impacted on Nigeria EcoG negatively on the long and short run dynamics with a stable estimation as portrayed by the CUSUM square chart.

ARDL inflation economic growth co-integration error correction model AIC

Cited by 2

Inference from Modelling FDI and Unemployment Rate in Nigeria

I. J. David, Danjuma Idi · Asian Journal of Science, Technology, Engineering, and Art · 2024

ARDL Inference for Some Macroeconomic Variables on Nigerian Stock Prices

I. J. David, Sixtus Kenechukwu Nnamdi, O. Bamigbala · WSB Journal of Business and Finance · 2024

Article metrics

Real usage data collected on this platform.

0

Page views

0

PDF downloads

0

Outbound clicks

2

Citations

Views by country

Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".

No views recorded yet.

Traffic sources

Referring site, by host.

No traffic recorded yet.

Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.