THE EFFECT OF EXCHANGE RATE FLUCTUATION ON THE NIGERIA MAUFACTURING SECTOR (1986-2010)

 

Table Of Contents


Chapter ONE

INTRODUCTION

  • 1.1Introduction
  • 1.2Background of Study
  • 1.3Problem Statement
  • 1.4Objective of Study
  • 1.5Limitation of Study
  • 1.6Scope of Study
  • 1.7Significance of Study
  • 1.8Structure of the Research
  • 1.9Definition of Terms

Chapter TWO

LITERATURE REVIEW

  • 2.1Overview of Exchange Rate Fluctuation
  • 2.2Historical Perspective on Exchange Rates
  • 2.3Theoretical Frameworks on Exchange Rate Fluctuation
  • 2.4Impact of Exchange Rate Fluctuation on the Manufacturing Sector
  • 2.5Strategies for Mitigating Exchange Rate Risks
  • 2.6Empirical Studies on Exchange Rate Fluctuation
  • 2.7Comparison of Exchange Rate Systems
  • 2.8Global Perspectives on Exchange Rate Policies
  • 2.9Effects of Exchange Rate Volatility
  • 2.10Exchange Rate Forecasting Techniques

Chapter THREE

RESEARCH METHODOLOGY

  • 3.1Research Design
  • 3.2Population and Sample Size
  • 3.3Data Collection Methods
  • 3.4Data Analysis Techniques
  • 3.5Research Instrumentation
  • 3.6Ethical Considerations
  • 3.7Validity and Reliability
  • 3.8Limitations of Methodology

Chapter FOUR

DATA PRESENTATION AND ANALYSIS

  • 4.1Overview of Findings
  • 4.2Impact of Exchange Rate Fluctuation on Manufacturing Output
  • 4.3Effect of Exchange Rate Volatility on Export Competitiveness
  • 4.4Responses of Manufacturing Firms to Exchange Rate Fluctuations
  • 4.5Government Policies and Exchange Rate Management
  • 4.6Comparative Analysis of Exchange Rate Policies
  • 4.7Case Studies on Exchange Rate Fluctuations
  • 4.8Implications for Future Research

Chapter FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

  • 5.1Conclusion and Summary
  • 5.2Recap of Key Findings
  • 5.3Contributions to Literature
  • 5.4Practical Implications
  • 5.5Recommendations for Policy and Practice
  • 5.6Areas for Future Research

Project Abstract

This paper examines the effect of exchange rate fluctuations on the Nigerian manufacturing sector during a twenty five (25) years period (1986 – 2010). The argument is that fluctuation in exchange rate adversely affects output of manufacturing sector. This is because Nigerian manufacturing is highly dependent on import of input and capital goods. The methodology adopted for this study is empirical. The econometric tool of regression was used for the analysis. The population target of this study is the total number of 25 years from (1986 – 2010) (25) annual time series as data relating to other years after 2010 are not available. The used in this study is the secondary source of data. The data to be utilized in this study we be sourced through library research, publications of the Central Bank of Nigerian (CBN) i.e. statistic bulletin, National Bureau of Statistic(NBS), on line information and economic journals. Based on the findings, the researcher found out that exchange rate has no significant effect on economic growth of Nigeria also that there is no significant effect of fluctuation on exchange rate on the manufacturing sector. Some recommendations for policy were made based on the findings. Amongst others is the need to strengthen the link between agriculture and manufacturing‟s sector through local sourcing of raw materials thereby reducing reliance of the sector on import of input to a reasonable level.

Project Overview

INTRODUCTION
1.1      BACKGROUND OF THE STUDY
Following the fluctuation of the naira in 1986, a policy induced by the structural adjustment programme (SAP), the subject of exchange rate fluctuation has become a topical issue in Nigeria. This is because it is the goal of every economy to have a stable rate of exchange with its trading partners. In Nigeria, this goal was not reached in spite of the fact that the country embarked on devaluation to promote export and stabilize the rate of exchange. The failure to realize this goal subjected the Nigerian manufacturing sector to the challenge of a constantly fluctuating exchange rate. This was not necessitated by the devaluation of the naira but the weak and narrow productive base of the sector and the rising import bills also strengthening it. In order to stem this development and ensure a stable exchange rate, the monetary authority put in place a number of exchange rate policies.

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