The Effect of Inflation on Technological Development in Nigeria


Cite item

Full Text

Abstract

This paper analysed the effect of inflation on technological development in Nigeria. In an inflation-targeting regime, the monetary authority adjusts the nominal interest rate in order to converge current inflation to the established target. It adjusts the interest rate of financial institutions, changing the opportunity cost of investments. As a result, rising inflation promotes a reduction in R&D investments demand, reducing the rate of technological progress. In the empirical exercise of the model, the estimated coefficient of elasticity of technological investments is negatively affected by inflation.

 

About the authors

Bolorunduro David Daniel

Author for correspondence.
Email: bolorundurodaniel@gmail.com
Nigeria

References

Supplementary files

There are no supplementary files to display.


Copyright (c) 2023 Proceedings of young scientists and specialists of the Samara University

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

This website uses cookies

You consent to our cookies if you continue to use our website.

About Cookies