Estimating Aggregate Import-Demand Function In Nigeria: A Co-Integration Approach

This paper investigates the behaviour of Nigeria's aggregate imports between the periods 1980-2005. In the empirical analysis of the aggregate import demand function for Nigeria, cointegration and Error Correction modeling approaches have been used. Our econometric estimates suggest that real GDP largely explains the import demand function. This is significant for policy makers as it indicates the ineffectiveness of using exchange rate policy option in influencing import demand in Nigeria. Keywords: Import; GDP; trade liberalization; cointegrationJORIND Vol. 6 (1) 2008: pp. 18-1

Relationship Between Inflation and Real Economic Growth in Rwanda

peer reviewedThis study examines the impact of economic stability measures (inflation and unemployment rates) on real gross domestic product (GDP) in Rwanda. It uses quarterly data for the period of 2000Q1–2015Q4 collected from the Ministry of Finance and Economic Planning, Central Bank of Rwanda and the National Institute of Statistics of Rwanda (NISR). This study concludes that inflation and unemployment have a long-run negative and significant relationship on real gross domestic product. In the long run, the coefficients are not significant at the 5% level; it is only the inflation coefficient and error which are significant. Real gross domestic product increases when inflation reduces with a p-value of 0.00266; real gross domestic product increases when unemployment reduces with a p-value of 0.09882. The coefficient from the error correction model means that the effect of the shock will reduce by 0.0483% each quarter, meaning that the effect of the shock will reduce by 19.32% in each 4th quarter. This further means that it will end at 20 quarters, that is, after a five-year period. It has to be highlighted that there is a weak relationship between real gross domestic product and both inflation and unemployment rates