Inflation Rate And Economic Growth Rate Relationship: A Statistical Evidence From Nigeria
Nwaoha William Chimee Ph D
School of General Studies,Federal Polytechnic of Oil and Gas, Bonny Island, Rivers State, Nigeria
Atanu Enebi Yahaya
Department of Statistics, Federal Polytechnic of Oil and Gas, Bonny Island, Rivers State, Nigeria.
Ikoro Uzoma Eunice
Department of Business Admin. & Mgt., Abia State Polytechnic, Aba, Abia State, Nigeria.
Ohajianya Uzoma Bernard
Department of Business Admin. & Mgt., Abia State Polytechnic, Aba, Abia State, Nigeria.
Keywords: INFR, GDPGR, OLS, CBN
Abstract
This study used Ordinary Least Square (OLS) method to examine the inflation rate and economic growth rate (proxy by GDPGR) relationship in Nigeria during the period 1982-2018. The data such as inflation rate (INFR) and gross domestic product growth rate (GDPGR) were obtained from Central Bank of Nigeria (CBN) Statistical Bulletin. The result of the finding revealed that inflation rate has an inverse and significant relationship with GDPGR. This implies that a fall in inflation rate will lead to a rise in economic growth rate. Therefore, the researchers recommend that in order to ensure a sustainable economic growth rate in Nigeria, effective monetary and fiscal policies and other non-monetary measures should be used by the government to combat inflation rate.