EFFECTS OF EXCHANGE RATE TRENDS AND VOLATILITY ON IMPORTS IN NIGERIA: IMPLICATIONS FOR MACROECONOMIC POLICY

摘要: This study investigated the effect of exchange rate trends and volatility on Nigeria’s imports from 1971 to 2011. The empirical methodology, employed co-integration Parsimonious ECM model using Schwarz criterion Akaike information as lag length selection criterion. findings revealed that had positive significant only in long run depressed imports. It further a unidirectional causality runs policy implication is if not checked will lead wide poor performance import sector. should be avoided, deregulation not-withstanding by adopting managed float system. Policy makers Nigeria consider policies long-run fix problem growth foreign goods demand. strongly recommends diversification economy shifting emphasis private sector, especially small medium scale enterprises (SMEs), produce domestic competitive substitute for imported goods.