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Author Kasumu, Ayodele Oluwole
Title Current account and consumption smoothing: Evidence for Nigeria, 1970--1999
book jacket
Descript 57 p
Note Source: Masters Abstracts International, Volume: 42-06, page: 2007
Adviser: Talan Iscan
Thesis (M.D.E.)--Dalhousie University (Canada), 2004
This thesis estimates a dynamic model of the Nigerian current account over the period 1970--1999 using the permanent income hypothesis as a guiding principle. Our model augments the classical consumption smoothing model, which relates the current account to changes in net output (defined as gross domestic product less the sum of investment and government expenditure), by the terms of trade. We examine the co-integrating relationship between the Nigerian current account, the change in net output, and the terms of trade using an error correction model
We find that there exists a positive long-run relationship between the Nigerian current account and the change in net output and there is a large transitory component to shocks to output. We also find that the terms of trade plays a significant role in the Nigerian current account determination and current account responds positively to rising terms of trade. The results demonstrate that the Nigerian economy slowly adjusts to the long-run equilibrium in the presence of short-run disturbances to net output and terms of trade
School code: 0328
Host Item Masters Abstracts International 42-06
Subject Economics, General
Alt Author Dalhousie University (Canada)
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