TABLE OF CONTENT
Title page - - - - - - - - - - - - - - - i
Declaration - - - - - - - - - - - - - - ii
Approval page - - - - - - - - - - - - - - iii
Dedication - - - - - - - - - - - - - - . - iv
Acknowledgement - - - - - - - - - - - - . - v
Abstract - - - - - - - - - - - - - - - .vi
Table of content - - - - - - - - - - - - - vii
List of figures - - - - - - - - - - - - - - .ix
List of tables - - - - - - - - - - - - - - .x
CHAPTER ONE: INTRODUCTION
1.1 Background of the study - - - - - - - - - - - .1
1.2 Statement of the problem - - - - - - - - - - - 10
1.3 Objective of the study - - - - - - - - - - - - .11
1.4 Formulation of research hypothesis - - - - - - - - - - .12
1.5 Significance of the study - - - - - - - - - - - 12
1.6 Limitations of the Study - - - - - - - - - - - . - 13
1.7 The scope of the study - - - - - - - - - - - - 13
CHAPTER TWO: REVIEW OF RELEVANT LITERATURE
2.1 Conceptual Framework - - - - - - - - - - - . - 14
2.2 Theories of Exchange rate - - - - - - - - - - - .17
2.2.1 Optimum currency area theory (OCA) - - - - - - - - - 17
2.2.2 Mint parity Theory - - - - - - - - - - - . - 19
2.2.3 Purchasing power parity - - - - - - - - - - - .20
2.2.4 Balance of payment/modern theory - - - - - - - - - 24
2.2.5 The Elasticity approach - - - - - - - - - - - - 28
2.3 Empirical literature - - - - - - - - - - - - 30
2.4 Limitations of previous studies - - - - - - - - - . - 40
2.5 Definition of terms - - - - - - - - - - - - 43
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Model specification - - - - - - - - - - - - - 48
3.2 Method of evaluation - - - - - - - - - - - - 50
3.3 Statistical test (first order) - - - - - - - - - - - 52
3.4 Economic second order test - - - - - - - - - - - 52
3.5 Nature and source of data - - - - - - - - - - - - 53
CHAPTER FOUR: ANALYSIS, RESULTS AND DISCUSSION
4.1 Presentation & interpretation of result - - - - - - - - - 54
4.1.1 Results of Granger-Causality Test - - - - - - - - - - 55
4.1.2 Results of Augmented Dicky Fuller Test (ADF) - - - - - - .57
4.1.3 Result of Cointegration analysis - - - - - - - - - .59
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of findings - - - - - - - - - - - - - 61
5.2 Conclusion - - - - - - - - - - - - - - 62
5.3 Policy recommendation - - - - - - - - - - - - .62
REFERENCES - - - - - - - - - - - - . - - .64
APPENDIX - - - - - - - - - - - - - - - - - 67
LIST OF FIGURES
Figure 1: Patterns of exchange rate, showing the different rate regimes - - - - 3
Figure 2: movement of exchange rate, supply of money and gross domestic product - .6
Figure 3: movement of exchange rate & external reserve - - - - - - .7
Figure 4: Trend of exchange rate & selected macroeconomic indicators in Nigeria (1980
– 2010)
- - - - - - - - - - - - - - - - - - .9
LIST OF TABLES
Table 1.1: Descriptive statistics results - - - - - - - - - - .54
Table 1.2: Results of Granger-Causality
test - - - - - - - - - .55
Table 1.3a: Results of ADF – Unit Root
test - - - - - - - - - .57
Table 1.3b: Results of ADF – Unit Root
test - - - - - - - - - .58
Table 1.3c: Results Cointegration
analysis - - - - - - - . - - - 58
