OIL PRICE VOLATILITY AND MACROECONOMIC PERFORMANCE IN NIGERIA: THE PRINCIPAL COMPONENT-GARCH APPROACH
Abstract
Author(s): Nwogwugwu, Uche C., Ijomah, Maxwell A., Uzoechina, Benedict I.
The Nigerian economy is largely oil-dependent as it accounts for a significant proportion of the Gross Domestic Product. Also the structure of exports in Nigeria shows the acute dominance of this natural resource. This dominance is further revealed especially with regards to revenue generation by the government. Budgetary allocations are many a time made based on projections about the expected path of oil prices thus making the economy susceptible to volatility emanating from the international oil market
