Acta Universitatis Bohemiae Meridionalis, 2018 (vol. 21), issue 1

The Influence of Oil Price Volatility on Selected Macroeconomic Variables in Nigeria

David Umoru, Sylvester Ohiomu, Richard Akpeke

Acta Univ. Bohem. Merid. 2018, 21(1):1-22 | DOI: 10.1515/acta-2018-0001804  

The paper analyses the influence of oil price volatility on Exchange Rate Variability, External Reserves, Government Expenditure and real Gross Domestic Product using the methodology of Vector Auto-Regressive (VAR) to carry out regression analysis, impulse response function and factor error variance decomposition for robust policy recommendations. The results of the research show that unstable oil price exerts varying degrees of deleterious effect on exchange rate variability, external reserves, Government expenditure and real gross domestic product (GDP). Based on the findings of the study, we recommend the need for the country to branch out its revenue...