Impact of Oil Price Changes on Selected Macroeconomic Variables in Nigeria
Harbor Florence Ifeyinwa *
Department of Banking and Finance, Faculty of Management Science, Enugu State University of Science and Technology (ESUT), Nigeria.
Oleka Dorathy Chioma
Department of Banking and Finance, Faculty of Management Science, Enugu State University of Science and Technology (ESUT), Nigeria.
*Author to whom correspondence should be addressed.
Abstract
In this study, the impact of oil price changes on selected variables in Nigeria within the period, 1981-2016 had been evaluated. Adopting the ex-post facto research design with annual time series and using The Autoregressive Distributed Lag (ARDL) model; the results revealed that the change in oil price had a positive and significant impact on government revenue and government expenditure, but had no positive and significant impact on the domestic price level. It is therefore recommended that the monocultural economy should be omitted through well-planned and implementation diversification.
Keywords: Oil price, government revenue, government expenditure, ARDL, Nigerian economy