The Nexus Between Exchange Rate and Export in Nigeria

Abstract

The study examined the relationships between exchange rate and export in Nigeria. Using export, exchange rate, interest rate and inflation as research variables, the study also employ ARDL Bound testing as the technique of analysis. Finding indicates that in the short-run, there is a positive and significant relationship between exchange rate and export, while it confirms an insignificant relationship between interest rate, inflation and export. The long-run analysis indicates that, further increase in exchange rate is associated with an increase in export. The study recommends that there is the need for government to supply foreign exchange to meet the demand optimally; this requires the creation of policies and measures that will boost export in the country.