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Title: Crude Oil Price And Inflation Rate In Nigeria
Author(s): ENIEKEZIMENE Francis Ariayefa & NATHAN Emmanuel
Abstract: In spite of several years of employing monetary policy measures to curbing inflation in Nigeria, inflation remains one of the macroeconomic menaces of the economy. This study shifts the search to investigate the impact of crude oil price on inflation rate in Nigeria from 1980 to 2020 using the autoregressive distributed lag (ARDL) bound test approach to co-integration. Annual time series data were sourced from CBN Statistical Bulletin 2020 and World Bank Data Bank 2020. Inflation rate is the dependent variable, while crude oil price, crude oil export, exchange rate, gross domestic product and unemployment are the explanatory variables. The results revealed that crude oil price (COP) exerted significant negative impact on inflation rate (INFR) in the short run, but negative and statistically insignificant impact on inflation rate in the long run. Expectedly, crude oil export (LOEP) had significant positive impact on inflation in the long run while GDP growth rate exhibited significant negative influence on inflation in both the short and long run periods. Based on the findings of this study, we recommended that more efforts should be made by government to stimulate GDP growth rate in Nigeria.
Keywords: Crude Oil Price, Inflation, Correlation Test, Autoregressive Distributed Lag, Nigeria
Journal: Economic and Social Science Review (ESR)

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