CURRENCY SUBSTITUTION AND EFFECTS ON PRIVATE INVESTMENT IN NIGERIA
DOI:
https://doi.org/10.60787/AASD-v2i1-28Keywords:
Currency, substitution, investment, real exchange rate, foreign interest rateAbstract
This study examines the impact of currency substitution on private investment expenditure in Nigeria. Central Bank of Nigeria (CBN) yearly statistical bulletin formed the major source of data for the study. The study employed the ARDL estimation technique to estimate the long and short run parameters. Findings of the study show that domestic interest rate (DIR) coefficient has a negative relationship to the private investment with changes in currency substitution in Nigeria. Based on the above findings, the study therefore suggests that government should through its policy makers strengthen the domestic currencyforeffective interest rate policy to invoke greater confidence among domestic private investors to induce increased investment and growth.
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