Home » Economics » THE IMPACT OF INFLATION ON PRIVATE CONSUMPTION EXPENDITURE AND ECONOMIC GROWTH I...
THE IMPACT OF INFLATION ON PRIVATE CONSUMPTION EXPENDITURE AND ECONOMIC GROWTH IN NIGERIA
Sold By: Joe Project Store | Item Type: Project Material | Report this? | Attributes: 65 pages | 1-5 chapters | Amount: ₦5,000 | 4 orders. | Marked useful: 4,845 times
INSTANT PROJECT MATERIAL DOWNLOADThis study empirically examine the impact of inflation on private consumption expenditure and economic growth in Nigeria using an annual time series data spanning from 1981-2012. In this study, modern time series econometric methodology such as Unit Root Testing, Johansson Co-integration test, Vector error co-integration granger causality test(VEC) and Vector Error Correction Model (VECM) where employed to model both the long run and short run relationships between inflation, economic growth, interest rate as (explanatory variables) and private consumption expenditure as (dependent variable). Augmented Dickey- Fuller (ADF) and Phillips–Perron (PP) test were conducted and the results show that all the data are not stationary at a level but after the first difference they become stationary. The Johansson co-integration test indicates that there exists a long run relationship between the variables for the period of study. However, the VEC Granger Causality result shows that inflation is positively granger causes private consumption expenditure for the period of study and there happens to be no causality flowing from inflation to economic growth, neither is there causality from economic growth to inflation in the short run. However, the long-run model result shows a negative impact of inflation on economic growth for the study period. It implies that I per cent increase in inflation will result in 0.69 decreases in economic performance (RGDP). It could therefore be recommended that Government together with the central Bank of Nigeria should develop and pursue prudent monetary and fiscal policies that would aim at reducing and stabilizing both the micro and macroeconomic indicators especially inflation targeting, so as to boast the growth of the economy.
This material content is developed to serve as a GUIDE for students to conduct academic research
DOWNLOAD THIS PROJECT MATERIAL NOW!
Advertise Here
Not what you were looking for? Perform a search
What's your project topic?
Comment on Facebook:
Related Project Materials
- 1.
ASSESSING THE NEXUS BETWEEN CAPITAL BUDGETING AND PERFORMANCE OF CORPORATE ENTITIES
ASSESSING THE NEXUS BETWEEN CAPITAL BUDGETING AND PERFORMANCE OF CORPORATE ENTITIES CHAPTER ONE INTRODUCTION 1.1 Background Of The Study An effic...More »
Item Type: Project Material | 54 pages | 0 engagements |
- 2.
AN INVESTIGATION OF EARNINGS MANAGEMENT AND ITS EFFECT ON CORPORATE TAX AVOIDANCE
AN INVESTIGATION OF EARNINGS MANAGEMENT AND ITS EFFECT ON CORPORATE TAX AVOIDANCE CHAPTER ONE INTRODUCTION Background of the study Companies see ...More »
Item Type: Project Material | 57 pages | 861 engagements |
- 3.
THE CAUSES AND CONSEQUENCES OF FLOOD ON THE SOCIO - ECONOMIC LIVELIHOOD OF URBAN AREAS OF KENYA
THE CAUSES AND CONSEQUENCES OF FLOOD ON THE SOCIO ECONOMIC LIVELIHOOD OF URBAN AREAS OF KENYA CHAPTER ONE INTRODUCTION 1.1 Background of the Study ...More »
Item Type: Project Material | 57 pages | 1,055 engagements |
- 4.
IMPLICATIONS OF FUEL SUBSIDY REMOVAL CRISIS IN NIGERIA
CHAPTER ONE INTRODUCTION 1.1 Background of the study The removal of fuel subsidies in Nigeria has been a subject of considerable controversy and de...More »
Item Type: Project Material | 54 pages | 3,114 engagements |
- 5.
AN INVESTIGATION INTO THE CAUSES AND EFFECT OF HIGH EXCHANGE RATE ON THE NIGERIA ECONOMY 2019-2023
AN INVESTIGATION INTO THE CAUSES AND EFFECT OF HIGH EXCHANGE RATE ON THE NIGERIA ECONOMY 2019 2023 CHAPTER ONE INTRODUCTION 1.1 Background of the s...More »
Item Type: Project Material | 54 pages | 1,837 engagements |
- 6.
A CRITICAL EVALUATION ON THE IMPACT OF SUBSIDY WITHDRAWAL IN 2023 ON THE ECONOMIC GROWTH OF NIGERIA
CHAPTER ONE INTRODUCTION 1.1 Background of the study Globally, fuel subsidy reform is increasingly seen as an opportunity for consolidating publi...More »
Item Type: Project Material | 54 pages | 1,638 engagements |