Domestic fuel price and the Nigerian macroeconomy
by Philip Ifeakachukwu Nwosa
African J. of Economic and Sustainable Development (AJESD), Vol. 1, No. 4, 2012

Abstract: This study examined empirically a one-to-one nexus between domestic fuel price and various macroeconomic variables in Nigeria for the period spanning 1986 to 2011. The study adopted both a vector auto-regressive (VAR) and a vector error correction (VEC) models for appropriate analysis. For pairs of variables that are integrated of the same order but not co-integrated, the VAR model revealed that a unidirectional causation exist from domestic fuel price to short term interest rate while for the pair of variables that are integrated of the same order and are co-integrated the VEC model revealed the existence of causality from domestic fuel price to inflation rate in the long run and in the short run. The study recommended that serious caution should be taking by the government on domestic fuel price increase especially in an attempt to remove fuel subsidy and deregulate the downstream sector of the oil industry.

Online publication date: Thu, 31-Jul-2014

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the African J. of Economic and Sustainable Development (AJESD):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com