Full Project – THE IMPACTS OF OIL PRICE VOLATILITY ON NIGERIA ECONOMY (2000-2016)
Click here to Get this Complete Project Chapter 1-5
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Economic growth plays a key role in industrial innovation (Malatyali, 2016). The first fluctuations in crude oil prices that occurred in 1973s have made economists to view sudden movements in the oil price as a fundamental source of economic fluctuations, for example, Hamilton (2005) suggests that in the last few decades, nine of the ten recessions in the USA were preceded by large positive increases in crude oil price. Moreover, the very recent highs registered in the crude oil market are causing concern about slowing in the economies of many developed countries including Nigeria. The price of a barrel of Brent crude oil in European countries fell from than $100 p/b in Sept 2014 to less than $46 p/b in January 2015. Besides, the decline was the third largest over the past 30 years, has particularly interesting parallels with the episode in 1985-86, therefore, renewed interest in the impacts of fluctuating oil prices on the economy. Therefore, this relation has captured increasing attention of academic researchers such as: (Hamilton, 2009; Kilian and Vigfusson, 2011; Edirneligil and Mucuk, 2014; Ftiti et al., 2016) the most influential articles in the field, and others. The impacts of fluctuations in oil prices on economic growth and their mechanism in oil-exporting countries differ from those in the oil-importing countries (Moshiri and Banihashem, 2012).
Over the years, concerned economists have examined the possible factors that lead to oil price fluctuations. For instance, shocks to the supply arising from political events such as wars and revolutions in OPEC member countries, improvements in the technology of extracting crude oil price, and the discovery of new fields. Also important steps in this regard, for example, in Taiwan “renewable energy development plan” of the installed capacity of solar power generation capacity planned between the years 2002-2020 in accordance with the aimed to reach 10 percent (Kizgin and Benli, 2013). In addition, a shock to the oil demand for crude oil price associated with unexpected movements in the global business cycle. As well, demand shock for above ground oil inventories, reflects shifts in expectations about future shortfalls of supply relative to demand in the oil markets (Hamilton (2008)). The period includes a lot of fluctuation and two severe accidents. One crash, in recent months of 2008, the so-called worst financial crisis since the great depression. Due to the expansion of financial derivative instruments, which have often been held accountable for giving rise to the financial crisis in 2008 (Ulusoy, 2011).
The second crash experienced in the oil price has declined sharply over $100 per barrel since June 2014 to around $30 pb recently. The decline in oil price poses considerable challenges for fiscal, monetary and structural policy. However, the shocks in oil price create uncertainty and undermine effective fiscal management of oil revenues. According to costs (Erdoğan, 2011) businesses seeking capital, uncertainty affecting the cost of capital is beneficial because it eliminates and reduces compliance costs. Changing oil prices have an effect on the global economic performance and the economy level of any country. The effects of this is positively or negatively dependent on the nature of the relation between oil-exporting economy and oil-importing economy (Le and Chang, 2015) that higher oil revenues play an oil price increase contributes to a transfer of wealth from oil importing to oil-exporting countries (Balcilar and Ozdemir, 2013). Studying the relationship of between crude oil price shocks and economic performance is significant for investors to take necessary investment decisions and for policy makers to regulate financial markets more effectively. Marketable securities, which can be considered as an indicator of accounting standards increase refers to temporary investments that are bought or sold for companies, the evaluation of the fair value method of marketable securities is another important issue (Erdoğan et al., 2016). Hierarchical structure may be useful in the detection of the theoretical description of financial markets and in the search of economic factors affecting special groups of stocks (Ulusoy et al., 2012). This study will examine the impacts of oil price volatility on Nigeria economy 2000-2016.
1.2 Statement of the Problem
It is no more news that the recent fall in crude oil prices that began in July 2014 is seriously affecting the economic activities of Nigeria and also in the areas like foreign reserves, currencies crisis, declining government revenue, and majorly possesses a threat to meet financial obligations as at the right. The implication of this is that it brings a large out pour of policies among policy makers and contributions from the academia. These policies have brought about the need to diversify our economy towards once thriving sectors in the economy, removal of subsidy, the war on corruption and reduction of government activities and government related cost. This study identified two basic research problems. First is the need to determine when agents believe that the effects of shocks will be permanent, shocks feed into their expectations, and the persistence of shock is thus large. In the same vein, when agents believe that the effects of shocks are only temporary, prices quickly return to their initial position. Secondly, the research problem is the need to understand the effect of oil price volatility on four fundamental economic variables (total government revenue, capital importation, exchange rate and foreign exchange reserves) in Nigeria. It is against this background that the researcher seeks to examine the impacts of oil price volatility on Nigeria economy from the year 2000-2016.
1.3 Research Objectives
The general objective or main objective of this study is to examine the impacts of oil price volatility on Nigeria economy from the year 2000-2016. The specific objectives are:
i) To understand the reasons for oil price volatility in the international market from the year 2000-2016
ii) To examine the influence of oil price volatility on Nigeria economy from the year 2000-2016
iii) To investigate the other source of government revenue as an alternative to oil price volatility in Nigeria
1.4 Research Questions
The following are some of the questions which this study intends to answer:
i) What are the reasons for oil price volatility in the international market from the year 2000-2016?
ii) What is the influence of oil price volatility on Nigeria economy from the year 2000-2016?
iii) What are the other sources of government revenue as an alternative to oil price volatility in Nigeria?
1.5 Research Hypotheses
To achieve the above objectives and provide answers to the research questions, the following hypotheses were formulated and stated in a null form;
i) There is no positive and significant relationship between oil price and economic growth”.
ii) There is no positive effect of crude oil volatility on government revenue, foreign exchange rate, capital importation and foreign external reserves
1.6 Significance of the Study
The recent crashing of global oil prices is attracting heated debate among policy makers and academics because of the effect on global output, inflation and economic stability. Nigeria represents a good case study for exploring the effect of exogenous oil price shock on oil exporting countries because of her dependence on crude oil earnings, and the challenges currently confronting the government. The significance of the study therefore is its contribution to literature as well as methodology and the economic importance of oil price uncertainty to growth for oil exporting countries like Nigeria. Thus, the findings of this study are beneficial to the government, policy makers, the private sector and academia.
1.7 Scope of the Study
The focus of the study is Nigeria, and it estimates the impact of crude oil prices on Nigeria’s Economic Growth. The study covered the period of 2000 to 2016. The yearly figures on GDP, Per-capita Income and Crude oil prices and the monthly average prices of Brent, West Texas Intermediate (WTI) and OPEC basket were used as proxies for crude oil prices, while foreign exchange rate, foreign external reserves, government revenue and capital importation were used to proxy economic indicators.
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:
- Accounting Research Project
- Adult Education
- Agricultural Science
- Banking & Finance
- Biblical Theology & CRS
- Biblical Theology and CRS
- Biology Education
- Business Administration
- Computer Engineering Project
- Computer Science 2
- Criminology Research Project
- Early Childhood Education
- Economic Education
- Education Research Project
- Educational Administration and Planning Research Project
- English
- English Education
- Entrepreneurship
- Environmental Sciences Research Project
- Guidance and Counselling Research Project
- History Education
- Human Kinetics and Health Education
- Management
- Maritime and Transportation
- Marketing
- Marketing Research Project 2
- Mass Communication
- Mathematics Education
- Medical Biochemistry Project
- Organizational Behaviour
- Other Projects
- Political Science
- Psychology
- Public Administration
- Public Health Research Project
- More Research Project
- Transportation Management
- Nursing
Need a Project Writer for a Different Topic
- MSC PROJECT WRITING SERVICES
- MBA RESEARCH PROJECT WRITING SERVICES
- Research Project Writing Services in Lagos Nigeria (Professional Writers) -Law, MSc, MBA,PhD, Dissertations, Thesis, Assignment, Speech
- Masters Research Project Writer in Lagos Nigeria
- MBA Research Project Writer in Lagos Nigeria
- LOOKING FOR A WRITING SERVICES FOR AN URGENT ASSIGNMENTS OR PROJECT WORK
- PROFESSIONAL WRITING SERVICES IN LAGOS NIGERIA (TERM PAPER, SPEECH WRITING, ASSIGNMENT, THESES, DISSERTATIONS, RESEARCH PROPOSAL, PROJECT WRITING SERVICES etc)
- BUSINESS ADMINISTRATION RESEARCH PROJECT WRITER IN LAGOS NIGERIA
- CONSULT A RESEARCH PROJECT WRITER IN LAGOS NIGERIA (PH.D, MBA, MSC, M.ED, BSC)
- MANAGEMENT RESEARCH PROJECT WRITER IN LAGOS NIGERIA
- Education Research Project Writer in Lagos Nigeria
- Environmental Sciences Research Project Writer in Lagos Nigeria
- Guidance and Counselling Research Project Writer in Lagos Nigeria
- Human Kinetics and Health Education Project Writer in Lagos Nigeria
- Early Childhood Education Research Project Writer in Lagos Nigeria
- Christian Religious Studies(CRS) Research Project Writer in Lagos Nigeria
- Educational Administration and Planning Research Project Writer in Lagos Nigeria
- Political Science Research Project Writer in Lagos Nigeria
- Accounting Research Project Writer in Lagos Nigeria
- Economics Research Project Writer in Lagos Nigeria
- Management Research Project Writer in Lagos Nigeria
- Marketing Research Project Writer in Lagos Nigeria
- Public Administration Research Project Writer in Lagos Nigeria
- MBA Research Project Analysts
- In Need of MBA Research Project Writer in Nigeria
- MBA Dissertation Research Project Writer
- MBA Project writer
- EDUCATION DEPARTMENT PROJECT WRITING SERVICES
- BACHELOR OF SCIENCE (BSC) DEGREE PROJECT WRITING SERVICES(B.ED,B.A,B.SC)
- Early Childhood Education Research
- MASTER OF BUSINESS ADMINISTRATION (MBA) RESEARCH PROJECT WRITING SERVICES
- MASTER OF SCIENCE (MSC) RESEARCH PROJECT WRITING SERVICES
- POST GRADUATE RESEARCH PROJECT WRITER
- POST GRADUATE DIPLOMA (PGD) RESEARCH PROJECT WRITER
- MASTER RESEARCH PROJECT WRITER
- MASTER DEGREE RESEARCH PROJECT WRITING SERVICES
- POSTGRADUATE RESEARCH PROJECT WRITING SERVICES
- MASTERS RESEARCH PROJECT WRITING SERVICES
- RESEARCH PROJECT WRITER
- EXPERT IN RESEARCH PROJECT/THESIS/DISSERTATION WRITING SERVICES IN LAGOS NIGERIA
- HIRE A PROFESSIONAL BSC/HND RESEARCH PROJECT WRITER
- HIRE A PROFESSIONAL MBA/MSC RESEARCH PROJECT WRITER
- HIRE A PROFESSIONAL THESIS WRITER IN LAGOS NIGERIA
- SC/M.SC/MBA/PGD RESEARCH PROJECT WRITER IN LAGOS NIGERIA
- Master Degree Research Project Specialist/Writer in Lagos, Nigeria
- Hire A Research Project Writer in Lagos Nigeria
- Research Project Specialist in Lagos, Nigeria
Full Project – THE IMPACTS OF OIL PRICE VOLATILITY ON NIGERIA ECONOMY (2000-2016)