Title: A Study on Interest and Inflation Rate that Influences the International Reserve to Accelerate Economic Growth of Nigeria from 1982-2015
Authors: Oluwagbenga E Ajisafe, Mustafa Bin Dakian
Volume: 10
Issue: 1
Pages: 71-87
Publication Date: 2026/01/28
Abstract:
Developing nations has been experiencing a surge in their international reserve over the years. This is widely believed to be done for self-insurance, inflation and foreign exchange control. And more importantly activate economic growth. This study involves establishing the impact of international reserve on the Nigerian economy over the timeframe 1982-2015. This is done by descriptive and econometric analysis. The analytical processes involved establishing the relationship between international reserve and economic growth. And also the effect of such macroeconomic variables such as inflation rate and interest rate on international reserve. Although a positive relationship exist between international reserve and economic growth, the findings display that international reserve has not played significant contributions to the advancement of the Nigeria economy within the timeframe 1982-2015 since there exist a weak relationship between international reserve and the Nigerian economy. Whereas inflation rate had a negative relationship with international reserves, interest rate displayed a positive relationship with international reserve.