International Journal of Innovative Social Sciences & Humanities Research 3(1):126-135, Jan-Mar. 2015(ISSN: 2354-2926)
© SEAHI PUBLICATIONS, 2015 www.seahipaj.org
PARADOX OF INTERTEMPORAL COMPARATIVE ADVANTAGE IN NIGERIA: THE ROLE OF FOREIGN EXCHANGE RATE MANAGEMENT
Osmond N. OKONKWO1* & OBIOMA B.K. Ph.D2
1Department of Economics, AlvanIkoku Federal College of Education, Owerri, Nigeria.
2Department of Economics, Faculty of Social Sciences, Imo State University, Owerri, Nigeria
* E-mail: email@example.com
This paper employed autoregressive distributed lag (ARDL) technique to cointegration to determine the
long-run relationship between intertemporal comparative advantage and foreign exchange management in
Nigeria. The error correction model of the autoregressive distributed lag approach reveals that the
demand for, and supply of, real foreign exchange determines changes in intertemporal comparative advantage
in Nigeria as measured by the manufacturing capacity utilization (MCU) in this paper. It was recommended
among others that there is urgent need for change in the choice of production techniques that exerts
pressure on foreign exchange in order to conserve and stabilize foreign exchange market in Nigeria.
intertemporal trade, exchange rate, capacity utilization, import dependent