Full Project-THE EFFECT OF EXCHANGE RATE FLUCTUATION ON THE NIGERIA MANUFACTURING SECTOR(1986-2010)

Full Project-THE EFFECT OF EXCHANGE RATE FLUCTUATION ON THE NIGERIA MANUFACTURING SECTOR(1986-2010)

Click here to Get this Complete Project Chapter 1-5

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

Following the fluctuation of the naira in 1986, a policy induced by the structural adjustment programme (SAP), the subject of exchange rate fluctuation has become a topical issue in Nigeria. This is because it is the goal of every economy to have a stable rate of exchange with its trading partners. In Nigeria, this goal was not reached in spite of the fact that the country embarked on devaluation to promote export and stabilize the rate of exchange. The failure to realize this goal subjected the Nigerian manufacturing sector to the challenge of a constantly fluctuating exchange rate. This was not necessitated by the devaluation of the naira but the weak and narrow productive base of the sector and the rising import bills also strengthening it. In order to stem this development and ensure a stable exchange rate, the monetary authority put in place a number of exchange rate policies. However, very little achievement was made in stabilizing the rate of exchange. As a consequence, the problems of exchange rate fluctuation persisted in macro-economic management, exchange rate policy as an important tool derives from the fact that changes in the rate of exchange have significant implications, for a country‟s balance of payment position and even its income distribution and growth. It is not surprising since its behaviour is said to determine the behaviour of several other macro-economic variable (Oyejide, 1985). It is even more so for Nigeria which had embarked on a course of rapid economic growth with attendant high import dependency. The manufacturing sector plays a catalytic role in a modern economic and has many dynamic benefits that are crucial for economic transformation. In an advanced country, the manufacturing sector is a leading sector in many respects. It is a quest for increasing productivity in relation to import substitution and export expansion, creating foreign exchange earnings capacity, raising employment, promoting the growth of investments of a faster rate than any other sector of the economy, as well as wider and more eicient linkage among dierent sectors (Fakiyesi, 2005). But the Nigerian economy is under-industrializes and its capacity utilization is also low. This is in spite of the fact that manufacturing is the fastest growing sector since 1973/74 (Obaden, 1994). The sector has become increasingly dependent on the external sector for import of non-labour input (Okigbo, 1973). In the ability to import therefor; can impact negatively on manufacturing production Oyejide (1985) posited that the breakdown of the Brelton woods system induce variability in the rate of exchange worldwide; Nigeria inclusive. Umubanwer (1995) has noted that three adverse consequence of this on ability to import. Devaluation which further aggravates the situation has not significantly affected economic performance in the positive direction in Nigeria (Ojo, 1990).

Get the Complete Project

This is a premium project material and the complete research project plus questionnaires and references can be gotten at an affordable rate of N3,000 for Nigerian clients and $8 for International clients.

Click here to Get this Complete Project Chapter 1-5

 

 

 

 

 

You can also check other Research Project here:

1, Accounting Research Project

  1. Adult Education
  2. Agricultural Science
  3. Banking & Finance
  4. Biblical Theology & CRS
  5. Biblical Theology and CRS
  6. Biology Education
  7. Business Administration
  8. Computer Engineering Project
  9. Computer Science 2
  10. Criminology Research Project
  11. Early Childhood Education
  12. Economic Education
  13. Education Research Project
  14. Educational Administration and Planning Research Project
  15. English
  16. English Education
  17. Entrepreneurship
  18. Environmental Sciences Research Project
  19. Guidance and Counselling Research Project
  20. History Education
  21. Human Kinetics and Health Education
  22. Management
  23. Maritime and Transportation
  24. Marketing
  25. Marketing Research Project 2
  26. Mass Communication
  27. Mathematics Education
  28. Medical Biochemistry Project
  29. Organizational Behaviour
  30. Other Projects
  31. Political Science
  32. Psychology
  33. Public Administration
  34. Public Health Research Project
  35. More Research Project
  36. Transportation Management
  37. Nursing

 

 

Need a Project Writer for a Different Topic