| Abstract: |
This study was motivated by the urgent need to diversify the Nigerian economy
away from oil. The economy has since the 1970s relied on revenue from oil with
attendant consequences from oil price swings. Thus, the study employs the
relatively new Bounds testing approach of Pesaran, Shin, and Smith (2001) with
the critical values and approximate p-values developed by Kripfganz and
Schneider (2018), to test the effect of exchange rate-tourism pass-through
effect on growth. In the literature, the tourism-led growth has been studied
for various countries. However, this study is the first to investigate the
impact of exchange rate-tourism pass-through effect on growth in addition to
testing their main effects. And it reveals for the first time, an exchange
rate-tourism-led growth. Thus, Nigeria should adopt sound policies in the
tourism sector that would make it possible to take advantage of the naira
depreciation. |