AN EMPIRICAL ANALYSIS OF THE IMPACT OF INFLATION ON ECONOMIC GROWTH: NEW EVIDENCE FROM NIGERIA
Bakari Wadinga
Volume 3 Issue 2
Abstract
The study undertakes a crucial investigation into the impact of inflation on economic growth in Nigeria from 1970 to 2021. Through a robust analytical framework encompassing descriptive analysis, correlation assessment, and the application of the Autoregressive Distributed Lag (ARDL) model, the research delves into the intricate dynamics of these pivotal variables. The findings underscore the compelling negative impact of inflation on economic growth, corroborating established economic theories. In response, the study provides strategic recommendations that encompass adept inflation management, imperative export diversification, steadfast exchange rate stability, a visionary long-term economic outlook, and continuous monitoring. By navigating the intricate interplay between inflation and economic growth, this study equips policymakers and stakeholders with actionable insights for prudent decisions that artfully balance inflation control and the pursuit of enduring economic growth. Keywords: Inflation, Economic Growth, Nigeria, ARDL Model, Export Diversification, Exchange Rate Stability
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