An Econometrics Analysis of the Impact Exchange Rate on Economic Growth of Nigeria

The study interrogates the impact of exchange rate on economic growth Nigeria from 1981 to 2020 using quarterly time-series data Central Bank and World National Account. dependent variable in model was Real Gross Domestic Product (RGDP), independent variables were Exchange Rate (EXCHR), inflation (INFL), Interest (INTR), Foreign Direct Investment (FDI), Broad Money Supply (M2) Current Account Balance Payment (CAB). methodology employed Auto-Regressive Distributed Lag (ARDL) which incorporates Cointegration Bond test Error-Correction Mechanism. finding indicates that short run, EXCHR, CAB, M2 FDI, had a positive growth. EXCHR CAB significant while FDI insignificant However, INTR INFL negative with both being statistically significant. bound showed there long-run relationship among variables, results long run reveal has Inflation, rate, (CAB) all have Based findings recommended monetary authority should strictly monitor operations banks other forex dealers view ensuring unethical practices are adequately sanctioned serve as deterrent others.