ABSTRACT
This chapter presents for Nigeria our empirical investigations into the several variants of the present value model of the current account (PVMCA) developed in Chapter 4. The standard (labelled as the ‘benchmark’) version of the PVMCA was presented in Chapter 4 and then extended to accommodate the impact on the current account of changes in the interest rate, exchange rate and terms of trade. Also, given the political and macroeconomic instability in Nigeria during the period 1960-97, asymmetry in access to the international financial market was incorporated into one of the versions of the PVMCA developed in Chapter 4. Another variant encompassed Nigeria’s Structural Adjustment Program of 1986.
