Access the full text.
Sign up today, get DeepDyve free for 14 days.
M. Zaidi, Zulkefly Karim (2014)
Impact of Singapore, US and Japanese Macroeconomic Shocks on Malaysian Economy: A Sign-Restricted SVAR AnalysisJurnal Pengurusan UKM Journal of Management, 41
Bartosz Mackowiak (2007)
External shocks, U.S. monetary policy and macroeconomic fluctuations in emerging marketsJournal of Monetary Economics, 54
M. Kose, Raymond Riezman (1999)
Trade Shocks and Macroeconomic Fluctuations in AfricaInternational Trade
Ignazio Angeloni, Anil Kashyap, Benoît Mojon, D. Terlizzese, Anil Kashyap (2003)
NBER WORKING PAPER SERIES THE OUTPUT COMPOSITION PUZZLE: A DIFFERENCE IN THE MONETARY TRANSMISSION MECHANISM IN THE EURO AREA AND U.S
J. Allégret, Cecile Couharde, Cyriac Guillaumin (2012)
The Impact of External Shocks in East Asia: Lessons from a Structural VAR Model with Block ExogeneityInternational Economics, 132
Luis Carranza, J. Cayo, J. Galdon-Sanchez (2003)
Exchange rate volatility and economic performance in Peru: a firm level analysisEmerging Markets Review, 4
M. Rasaki, C. Malikane (2015)
Macroeconomic shocks and fluctuations in African economiesEconomic Systems, 39
Hussein Khasharmeh, Abdelmohsen Desoky (2018)
Does the Provision of Non-audit Services Affect Auditor Independence and Audit Quality? Evidence from BahrainAsian Academy of Management Journal of Accounting and Finance, 14
M. Zaidi, Zulkefly Karim (2018)
Impact of China on Malaysian Economy: Empirical Evidence of Sign-Restricted Structural Vector Autoregression (SVAR) ModelAsian Academy of Management Journal of Accounting and Finance, 14
I. Gumus, Zeren Taşpınar (2015)
Real exchange rate volatility and business cycles in emerging market economiesEconomics Letters, 134
(2018)
International financial statistics report
Usaid., Vietnam. (1950)
Annual statistical bulletin
International Journal of Humanities and Social Sciences, 2
N. Othman, M. Zaidi, Zulkefly Karim, Z. Yusop (2015)
Impact of external and domestic shocks on Malaysia's electronic and electrical (E & E) export demand, 9
Ojeyinka Ayobami (2019)
Exchange Rate Volatility and the Performance of Manufacturing Sector in Nigeria (1981 – 2016), 7
Lukman. Oyelami, P. Olomola (2016)
External shocks and macroeconomic responses in Nigeria: A global VAR approachCogent Economics & Finance, 4
Siti Mohamad (2016)
EXTERNAL SHOCKS AND MALAYSIAN OUTPUT COMPOSITION : THE IMPACT OF THE 2007 GLOBAL FINANCIAL CRISIS
S. Yamamoto (2014)
Transmission of US financial and trade shocks to Asian economies: Implications for spillover of the 2007–2009 US financial crisisThe North American Journal of Economics and Finance, 27
Mardi Dungey, Renée Fry (2003)
International Shocks on Australia - the Japanese EffectWiley-Blackwell: Australian Economic Papers
T. Nguyen, Thu Tran, Thi Le (2014)
The Impact of External Shocks on Small Open Economies: Evidence from East Asian CountriesInternational journal of economics and finance, 6
Steven Kamin, J. Rogers (1997)
Output and the Real Exchange Rate in Developing Countries: An Application to MexicoDevelopment Economics
R. Buckle, Kunhong Kim, Heather Kirkham, Nathan McLellan, Jarad Sharma (2007)
A structural VAR business cycle model for a volatile small open economyEconomic Modelling, 24
F�������� V������-M (2012)
Real business cycles in emerging economies: the role of international growth and interest rate
A. Ngwube, Mattew Ogbuagu (2014)
Global Financial Crisis and Nigeria EconomyGlobal Journal of Management and Business Research, 14
Hrushikesh Mallick, M. Mahalik, M. Sahoo (2018)
Is crude oil price detrimental to domestic private investment for an emerging economy? The role of public sector investment and financial sector development in an era of globalizationEnergy Economics, 69
A. Iwayemi, Babajide Fowowe (2011)
Impact of oil price shocks on selected macroeconomic variables in NigeriaEnergy Policy, 39
Journal of Development Economics, 61
R. Pradhan, Mak Arvin, Atanu Ghoshray (2015)
The dynamics of economic growth, oil prices, stock market depth, and other macroeconomic variables: Evidence from the G-20 countriesInternational Review of Financial Analysis, 39
O. Bazhenova, Y. Bazhenova (2016)
Modelling the Impact of External Shocks on Economy of Ukraine: Dsge ApproachEkonomika (Economics), 95
M. Rasaki (2017)
A Bayesian Estimation of DSGE Model for the Nigerian EconomyEuroEconomica, 36
A. Nizamani, M. Gilal, Ali Khushik, Syed Sh, Abidullah Abid (2017)
External Shocks and the Macroeconomic Response of Small Open Economy: A Structural-VAR Approach for PakistanAsian Journal of Scientific Research, 10
(2018)
World crude oil prices
P. Edelstein, L. Kilian (2009)
How sensitive are consumer expenditures to retail energy pricesJournal of Monetary Economics, 56
International Research Journal of Finance and Economics, 3
(2018)
International monetary fund direction of trade statistics
M. Mehrara, Kamran Oskoui (2007)
THE SOURCES OF MACROECONOMIC FLUCTUATIONS IN OIL EXPORTING COUNTRIES: A COMPARATIVE STUDYEconomic Modelling, 24
L. Kilian (2006)
Not All Oil Price Shocks are Alike: Disentangling Demand and Supply Shocks in the Crude Oil MarketMacroeconomics eJournal
F. Canova (2003)
The Transmission of Us Shocks to Latin AmericaLatin American Economics
O. Adeniyi, Dr. Omisakin, J. Yaqub, A. Oyinlola (2012)
Oil Price-Exchange Rate Nexus in Nigeria: Further Evidence from an Oil Exporting EconomyPolitical Economy: International Political Economy eJournal
E. Mendoza (1995)
The Terms of Trade, the Real Exchange Rate, and Economic FluctuationsInternational Economic Review, 36
Acta Universitatis Danubius, 14
Francisco Venegas-Martínez, Raúl Fernández, J. Vera-Valdés (2013)
Real business cycles in emerging economies: the role of international growth and interest rateInvestigacion Economica, 71
Martin Feldkircher, Florian Huber (2016)
The international transmission of US shocks—Evidence from Bayesian global vector autoregressionsEuropean Economic Review, 81
The study investigates the impact of external shocks on output composition (consumption and investment) in Nigeria for the period 1981:Q1– 2018:Q4. Trade-weighted variables from the country's five major trading partners are constructed to capture the impact.Design/methodology/approachThe study employs a block exogeneity open economy structural vector autoregressive (SVAR) analysis in studying the stated relationship.FindingsThe study reveals that external shocks significantly affect consumption and investment in Nigeria. Results from the structural impulse response function suggest that foreign output, real effective exchange rate and foreign interest rate have significant negative effects on consumption and investment. Specifically, results from error variance decomposition show that foreign inflation and real effective exchange rate shocks are major drivers of fluctuations in consumption and investment in Nigeria. Interestingly, the study finds that oil price shock accounts for minor variations in consumption and investment in Nigeria.Research limitations/implicationsThe findings suggest that consumption and investment in Nigeria are substantially and largely driven by external shocks.Practical implicationsThere is need for the monetary authority and the Nigerian government to design appropriate policies to stabilise the naira and salvage the country's exchange rate from unexpected large swings so as to reduce the vulnerability of the economy to external shocks.Originality/valuePrevious studies on external shocks have concentrated on the impact of external shocks on aggregate variables such as output and inflation, while few studies on external shocks in Nigeria capture external shocks through single-country data. This study differs from previous similar studies in Nigeria in two ways. First, the study examines the impact of external shocks on output composition such as consumption and investment. Second, the study captures the impact of external shocks on the two components of gross domestic product (GDP) by constructing trade-weighted variables from Nigeria's five major trading partners.
Journal of Economic and Administrative Sciences – Emerald Publishing
Published: Oct 22, 2021
Keywords: Nigeria; Investment; Consumption; External shocks; SVAR; Output composition
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.