Exchange Rate Changes and Export Prices in a Small Semi-Open Economy

This paper analyses the reaction of export prices to exchange rate changes in Nigeria. The major proposition examined in the study is that, exchange rate changes are not reflected fully in the prices of the country's exports. The analysis suggests that manufactured export firms in the country may have been price discriminating between domestic and export markets; only about 93% of exchange rate changes occurring in the period 1986 to 1995 is shown as reflected in the domestic price of manufactured export. However, this result is qualified by the fact that, over 75% of the data analysed were generated.     

Resource Export Booms,Macroeconomic Policies and Structural Change in Nigeria

Abstract: This paper carries out a comparative investigation of the contributory roles of two resource export booms as well as the macroeconomic policies implemented in the boom and post boom periods, in respect of the structural change experience of Nigeria in the period 1950-85. A combination of the ‘Dutch Disease’ model and an adapted Chenery-Syrquin index of structural change are employed in the study. The analysis suggests that, although the relatively greater resources from the oil boom induced greater expansion in monetary and fiscal policies, most of the macroeconomic policies implemented in the relevant periods only differ in degree and not in kind. However, the notable departure from the traditional wage and exchange rate policies since the post agricultural boom period was found to be a potent contributory factor to relative sectoral growth rates in the economy. Résumé: Ce document fait une étude comparative de la contribution de deux phases d'expansion des exportations dc ressources ainsi que des politiques macroéconomiques appliquées durant et après ces périodes, dans le cadre du changement structurel mtcrvenu au Nigeria entre 1950 et 1985. Une combinaison du modèle du “syndrome hollandais” et l'index Chenery-Syrquin adapté du changement structurel est utilisé dans cette étude. L'analyse suggére que, bien que les rencnus importants provenant du “boom pétrolier” entrainent une expansion des politiques macroéconomiques miscs en ocuvrc au cours des périodes choisies, différent seulemcnt selon leur importance et non scion leur nature. Toutefois, il est établi que l'adoption, depuis la période ayant suivi le boom agricole, d'une orientation qui s‘écarte sensiblement des politiques traditionnelles de salaires ct de taux de change, a contribué notablement aux taux de croissance relative des secteurs de l’économie.