ABSTRACT
This study aimed at analyzing through econometric methodology the Determinant of Balance of payment in Nigeria. In the work, we capture balance of payment as the dependent variable while trade openness, external debt service and exchange rate as the explanatory variable. In the second page of the regression estimated we observed GDP as the dependent variable while balance of payment, trade openness exchange rate and external debt service being the independent variable. An ordinary least square was used to capture the relationship between the variables been the regression plane. From the result estimated, we observed that all parameters are statistically significant from the t-test statistics. We also realize from the F-test estimation that the model is statistically insignificant because the T-cal < T-tab in all the variable. The result went further in the test of autocorrelation through the Durbin-Watson that there is absence of autocorrelation among the variable.
TABLE OF CONTENTS
CHAPTER ONE
1.0 Introduction
1.1 Background of study
1.2 Statement of problem
1.3 Objectives of the study
1.4 Research Questions
1.5 Hypothesis of the study
1.6 Significance of the study
1.7 Scope of the study
1.8 Plan of the Study
1.9 Source of Data and Basic Methodology
CHAPTER TWO
2.0 Literature Review
2.1 Conceptual Literature
2.1.1 Concept of Balance of Payment
2.2 Nigeria’s Balance of Payments
2.2.1 Importance of Balance of Payments
2.3 Components of the Balance of Payments
2.3.1 The Current Account
2.3.2 The Capital Account
2.3.3 Balance of Regular Transaction or Overall Balance
2.3.4 Official Balance
2.4 Theoretical Literature
2.4.1 Approaches to a Balance of Payments Analysis
2.4.1.1 Elasticities Approaches or Elasticity of Demand for Exports and Imports
2.4.1.2 Absorption Approach
2.4.1.3 Monetary Approach
2.5 Measurement of Balance of Payment Surpluses and Deficits
2.5.1 Difference in Balance of Trade and Balance of Payment
2.5.2 Dis-Equilibrium in Balance of Payments
2.5.3 Causes of Disequilibrium in Balance of Payment
2.5.4 Adjustment Mechanism to Correct of BOP Disequilibrium
2.6 Determinants of Trend of Payment in Nigeria
2.7.1 Determinants of Balance of Payment
2.8 Empirical Literature
CHAPTER THREE
3.0 Research Methodology
3.1 Research Design
3.2 Sources of Data
3.3 Restatement of Hypothesis.
3.4 Model Specification
3.5 Method of Analysis
3.6 Economic Aprior Test
3.6.1 Statistical Criterion Test
3.6.2 Econometric Criteria Test
CHAPTER FOUR
4.0 Presentation and Analysis of Empirical Results
4.1 Presentation of Regression Results
4.2 Interpretation of Regression Results
4.3 Evaluation of the estimated parameters
CHAPTER FIVE
5.0 Summary, Conclusion and Recommendation
5.1 Summary of the findings
5.2 Conclusion
5.3 Policy Recommendations
REFERENCES
