Description
ABSTRACT
This work sets out to examine the relationship between balance of payment and exchange rate. The work is divided into five chapters; chapter 1 gives a general introduction to the subject matter, chapter two gives the general review of literature in the subject matter, chapter 3 gives or states the methodology and specifies the model used for testing. Chapter four runs the required test and provides the result as well as the interpretation and chapter five concludes the findings and recommends policy for the government based on the findings in the test.The ordinary least square regression (ols) method is used to test for R-squared test (explanatory power of the variables), T-test for the reliability, F-test for the overall significance of the exponentials and D.W test which is the econometric criterion for testing for presence of auto regressive scheme. The result shows a negative relationship between balance of payment and trade openness, also there exists a positive relationship between exchange rate and foreign direct investment. Since trade openness has a negative impact on the balance of payment it is recommended that the government should not consider it a policy for economic development.
TABLE OF CONTENT
Title page
Certification
Dedication
Declaration
Acknowledgement
Abstract
Table of content
CHAPTER ONE
Introduction
Background of Study
Statement of research problem
Objective of the study
Research Hypothesis
Scope of study
Significance of study
CHAPTER TWO
Review Of Literature And Theoretical Frame Work
Introduction
Theoretical Concept in exchange rate
Literature Review
Exchange system and monetary standards in Nigeria
Types of Exchange rate
Factors affecting rate of exchange
Instruments of foreign payment
Foreign Exchange market
Theories of Rate of Exchange
Exchange rate policy in Nigeria
Summary of Literature review
Theoretical Framework
Balance of payment or modern theory
Features of Balance of payment
Distinguishing between balance of payment and balance of trade
Components of balance of payment
Disequilibrium in balance of payment
Methods of correcting or adjusting disequilibrium
The effect of exchange rate devaluation on the balance of
Payment
CHAPTER THREE
Methodology And Model Specification
Methodology
Model specification
Estimation techniques and method of data analysis
Statistical test
Economic A priori test
Econometric Test
Source of Data required and data required
CHAPTER FOUR
Presentation of Analysis
Presentation of Result
Interpretation of Result
Evaluation Based of Statistical test
Coefficient of Determinant
The T-test
The F test
Economics criterion
Econometric test
CHAPTER FIVE
Summary of Findings
Conclusion
Recommendation
Bibliography
Appendix