The long-run determinants of inflation in Nigeria (1970-1998)

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Periodical article

Title:	The long-run determinants of inflation in Nigeria (1970-1998)
Authors:	Folorunso, B.A. Abiola, A.G.
Year:	2000
Periodical:	The Nigerian Journal of Economic and Social Studies
Volume:	42
Issue:	1
Pages:	37-53
Language:	English
Geographic term:	Nigeria
Subject:	inflation
Abstract:	This study investigates the long-run determinants of inflation in Nigeria between 1970 and 1998, using the econometric methods of cointegration and error correction mechanism. It found that all variables, except inflation rate, exhibited non-stationarity. The results also indicate that inflation cointegrated with all the identified explanatory variables, suggesting that inflation in Nigeria could be caused by the level of income, money supply, and public sector balance. The study found that in the long run, however, exchange rate, money supply, income and fiscal balance determine the inflation spiral in Nigeria. The study concluded that a reduction in fiscal deficits, an increase in domestic production and a stable exchange rate should be pursued as means of controlling inflation in Nigeria. Bibliogr., ref., sum. [Journal abstract]