아프리카ㆍ중동

The paper examines the impact of exchange rate on industrial production in Nigeria over the period 1986-2010. The results of the study obtained using the Vector Error Correction Model (VECM), confirm the existence of long run relationship between industrial production index, exchange rate, money supply and inflation rate. Moreover, exchange rate depreciation had no perceptible impact on industrial production in the short run but had positive impact in the long run. Finally, the results show money supply explained a very large proportion of variation in industrial production in Nigeria.