Abstract
This study investigates the effects of asymmetric exchange rate volatility on international trade in Nigeria, using a monthly data from 2000-2017. The ARCH and GARCH model were used to extract the volatility of the real exchange rate. Results from the asymmetric ARDL model confirms the presence of asymmetry in exchange rate volatility. The study further estimates that the positive components of exchange rate volatility has significant negative impacts on trade, while the negative components have positive impacts. The results of this study suggest policy directives which may be useful recommendations for policy creators. Since the role of exchange rate volatility on trade balance indicates negative and statistical significance, it is appropriate for the authorities to develop sound exchange rate management policies for the country...
M.Com. (Financial Economics)