An Assessment of Simultaneous Attainability of Internal and External Economic Stability: Evidence from Nigeria
Keywords:Balance of payments, Economic growth, Inflation, Unemployment, Stability.
AbstractThis study set out to investigate whether it is possible to simultaneously achieve internal and external economic stability objectives and to examine the impact of economic stability on economic growth. A model of simultaneous relation was formulated and identified. Data covering 1970 – 2012 were collected and the technique of Indirect Least Squares (ILS) was applied to analyze the data. The study found that there is a trade-off relationship between internal stability and external balance. Achieving external balance is therefore at the expense of internal balance. There is, thus, the need for government to choose between achieving internal balance or external balance. It is therefore the recommendation of this paper that priority attention should be given to internal stability.
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