ABSTRACT
The research work critically examined the extent to which naira exchange rate depreciation has affected domestic inflationary rate in Nigeria between the year 2000-2013. Therefore, in this study the researcher examined the trend of inflation and exchange and the relationship between the two variables. A model was specified to show the relationship between both variable. Also interest rate was included in the model as one of the variables that affects inflation. The model was then estimated using multiple regression method and variable statistical test were carried out on the regression equation. The result was analyzed accordingly. Moreover the result of the statistical test shows that exchange rate depreciation of naira is significant in explaining variation in the rate of inflation. Among the findings are that domestic inflation has significant impact on the Nigeria economic growth. The recommendation is that the federal government should provide a possible solution to reduce inflation in the nation like improving the value and quality of the naira over other foreign currencies like the U.S dollar. In conclusion, the data for the project work was collected from most recent years in order to make findings, adequate in explaining the cause of inflation in recent times.
TABLE OF CONTENTS
Title page i
Certification page ii
Approval page iii
Dedication iv
Acknowledgment v
Table of contents vi
Abstract vii
CHAPTER ONE
INTRODUCTION 1
1.1 Background of the study 1
1.2 Statement of Problems 4
1.3 Significant of the Study 6
1.4 Objectives of the Study 7
1.5 Research Hypothesis 7
1.6 Scope and Limitation of the Study 8
1.7 Definition of Terms 9
References
CHAPTER TWO
REVIEW OF RELATED LITERATURE 12
2.1 The Concept of Exchange Rate 12
2.2 Exchange Rate Management in Nigeria 22
2.3 Inflation a Concept 31
2.4 Theories of Inflation 36
2.5 Inflation in Nigeria 42
2.6 Exchange Rate Depreciation and Inflation
in Nigeria 49
2.7 Empirical Evidence 52
Reference 55
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Research Design 57
3.2 Theoretical Framework and Model Specification 57
3.3 Data on Macro-Economic Variables 61
3.4 Source of Data 62
3.5 Population Size 66
3.6 Sample Size 66
3.7 Instrument of Data Collection 68
3.8 Method of Data Presentation 69
3.9 Techniques of Data Analysis 69
References 71
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Analysis of data 72
4.3 Test of hypothesis 81
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION
AND RECOMMENDATIONS
5.1 Summary of findings 89
5.2 Conclusion 90
5.3 Recommendations 93
Bibliography 95
Appendix 97
Questionnaire 98
