IMPACT OF INFLATION ON THE GROWTH OF POST- MILITARY NIGERIA, 1999-2018.

IMPACT OF INFLATIONON
THE GROWTH OF POST-
MILITARY NIGERIA, 1999-2018.
Ifeanyi, Ozioma Patricia
Department Of Accountancy
Federal College Of Agriculture,
Ishiagu.
ABSTRACT
This study was set to ascertain the impact
of inflation on the growth of the Nigerian
economy using annualized data covering
the period 1999-2017; obtained from the
Central Bank of Nigeria (CBN) Statistical
Bulletin. Autoregressive Distributed Lag
Model form of the Regression Model
(ARDL) was used to allow for a combination
of variables with different stationarityBook of Abstract
Accounting and Finance Research Association
properties whether I(0) or I(1). The result
shows that economic growth is a negative
function of core inflation and food inflation;
while growth rate was found to be a
positive function of headline inflation. It
was also found that a positively significant
correlation existed between all forms of
inflation and the growth of the Nigerian
economy within the studied period. It is
therefore recommended that attention
should be given to aggressive agricultural
development to increase food production
and by extension reduce food inflation. In
addition,
it
government
is
necessary
should
make
that
the
use
of
contractionary fiscal policy instruments to
manage inflation and mitigate its negative
economic consequences.
Keywords: Core inflation rate, Food
inflation, Headline inflation, Growth rate,
ARDL.

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