International Oil Prices, Exchange Rates, Interest Rates and External Reserves of Nigeria: The Moderating Effect of Balance of Trade
Malgit Amos Akims *
Department of Public Policy and Administration, School of Humanities and Social Sciences, Kenyatta University, Nairobi Kenya.
*Author to whom correspondence should be addressed.
Abstract
The study sought to examine the moderating effect of balance of trade on the relationship between international oil prices, exchange rates, interest rates and external reserves of Nigeria. This study emanates from the master’s thesis of the author. The analysis was based on time series data spanning from 1981 to 2014. The study was based on causal research design. The study findings reveal that balance of trade had no significant moderating effect on the relationship between international oil prices and external reserves of Nigeria. The findings of the study indicate that balance of trade had a significant moderating effect on the relationship between exchange rates and external reserves of Nigeria. Furthermore, the study findings reveal that balance of trade had no significant moderating effect on the relationship between interest rates and external reserves of Nigeria. The study therefore recommends that policies aimed at managing the exchange rate should incorporate the dynamics in the balance of trade of Nigeria.
Keywords: Diflubenzuron, Balance of trade, L. erysimi,, international oil prices, enzymes., exchange rates, interest rates, external reserves