Using the framework of a dynamic intertemporal optimization model of an open economy, it is shown that the long-run investment-saving correlation follows directly from the economy’s dynamic budget constraint and this does not depend on the degree of international capital mobility. Therefore,...

This study conducts a comparative analysis of the effect of exchange rate shock on the industrial and agricultural sector in the regulated regime and the guided deregulated regime in Nigeria. The study employs a Structural Vector Autoregression (SVAR) to estimate the shock with the aid of SVAR...