Impact of Exchange Rate on Output and Growth in Gross Domestic Product in Nigeria; A Comparative Analysis

Abstract

This study assessed the effect of exchange rate on output level in economic at various exchange rate regimes. Government has over the years shown recognition of the role played by increased output in the presence of various exchange rate policies through huge investment in the manufacturing sector. This is reflected in the huge financial commitments into the manufacturing sector. However, the output level is not commensurate with the huge sacrifice and financial commitment into the sector. Ordinary least Square of regression was adopted in the analysis. Findings revealed that the exchange rate regimes in Nigeria do not influence the level of output, contrary to expectations. It is recommended that future policies should focus on encouraging local technology to improve productivity. Provision of infrastructural facilities should be improved to sustained growth GDP and sources of raw materials should be diversified. 

Keywords; Output, Exchange Rate, Gross Domestic Product