Assessing the Impact of Exchange Rate Volatility on the Nigerian Non-Oil Export Performance

Abstract

            Nigeria like other countries with abundant natural resources most especially oil often than not face a lot of challenges in attempt to balance its oil and non-oil export trade dichotomy. The fluctuations, frequencies and instability of the exchange rate movements since the beginning of the floating exchange rate regime have raised a concern about the impact of such movements on foreign trade flows. On this basis, the paper utilized ARDL econometric approach to examine the impact of exchange rate volatility on non-oil export performance in Nigeria covering the period 1980 to 2013. The main conclusion from the theoretical point of view suggests that, Nigeria as an exporter is highly risk-averse. This follows from the evidence of long run positive relationship that exist between the Nigerian non-oil export and exchange rate volatility as evidently reported in the long run estimate of the study.