The Asymmetric Influence of Exchange Rate and Inflation on Financial Development in Nigeria: Evidence from NARDL
عنوان مقاله: The Asymmetric Influence of Exchange Rate and Inflation on Financial Development in Nigeria: Evidence from NARDL
شناسه ملی مقاله: JR_IER-26-4_009
منتشر شده در در سال 1401
شناسه ملی مقاله: JR_IER-26-4_009
منتشر شده در در سال 1401
مشخصات نویسندگان مقاله:
Umar Dabachi - Faculty of Business and Management, Universiti Sultan Zainal Abidin Malaysia, Terengganu, Malaysia
Suraya Mahmood - Faculty of Business and Management, Universiti Sultan Zainal Abidin Malaysia, Terengganu, Malaysia
Ali Ahmad - Faculty of Maritime Study, Universiti Malaysia Terengganu, Terengganu, Malaysia
Aminu Jakada - Department of Economics and Development Studies, Faculty of Arts and Social Sciences, Federal University Dutse Nigeria, Dutse, Nigeria
Ahmad Abdullahi - Department of Economics, Faculty of Social and Management Sciences, Bayero University, Kano, Nigeria
Mohammed Abubakar - Faculty of Business and Management, Universiti Sultan Zainal Abidin Malaysia, Terengganu, Malaysia
Kabiru Kamalu - Faculty of Business and Management, Universiti Sultan Zainal Abidin Malaysia, Terengganu, Malaysia
خلاصه مقاله:
Umar Dabachi - Faculty of Business and Management, Universiti Sultan Zainal Abidin Malaysia, Terengganu, Malaysia
Suraya Mahmood - Faculty of Business and Management, Universiti Sultan Zainal Abidin Malaysia, Terengganu, Malaysia
Ali Ahmad - Faculty of Maritime Study, Universiti Malaysia Terengganu, Terengganu, Malaysia
Aminu Jakada - Department of Economics and Development Studies, Faculty of Arts and Social Sciences, Federal University Dutse Nigeria, Dutse, Nigeria
Ahmad Abdullahi - Department of Economics, Faculty of Social and Management Sciences, Bayero University, Kano, Nigeria
Mohammed Abubakar - Faculty of Business and Management, Universiti Sultan Zainal Abidin Malaysia, Terengganu, Malaysia
Kabiru Kamalu - Faculty of Business and Management, Universiti Sultan Zainal Abidin Malaysia, Terengganu, Malaysia
This paper examined the asymmetric effects of exchange rate, and inflation on financial development growth using a model enhanced with oil prices asymmetry to apprise model specification. The research question that has been used implies, do the changes in their asymmetry significantly influence financial development? We employed nonlinear auto-regressive distributive lag (NARDL). In addition, we used the monthly data from ۱۹۸۰M۰۱ to ۲۰۱۸M۱۲. We found a long-term negative shock in exchange rate, both short run positive shock and negative shocks, respectively, declining the financial development. Additionally, the long run negative oil price shock and its long-term positive shocks stimulate and decline financial development, respectively. Regarding inflation, its positive and negative shocks in long run, respectively, reduce financial development. While in the short run the negative and positive shock in inflation increase and decline the financial development respectively. Accordingly, the results demonstrate a stable and sustainable inflation and exchange rate environment that would negatively cause financial development to stabilize the oil price and enhance the robust financial system. Therefore, successful policies that promote low inflation and exchange rates, overhaul of reliably improved financial institutions, capital accumulation, and efficient resources mobilization should be put in place for positive financial development to occur.
کلمات کلیدی: Asymmetries, Exchange rate, Financial Development, Inflation, NARDL, oil prices
صفحه اختصاصی مقاله و دریافت فایل کامل: https://civilica.com/doc/1778839/