Economic policy uncertainty index for Nigeria

Tumala, Mohammed M. and Omotosho, Babatunde S. and Mohammed, Mohammed G. and Musa, Murtala and Eguasa, Bright E. (2023): Economic policy uncertainty index for Nigeria.

Abstract

We construct an index of economic policy uncertainty (EPU) for Nigeria following the news-based approach developed by Baker et al. (2016). The index is based on news articles published by five Nigerian newspapers over the period May 2009 – June 2023.The computed index tracks major events in the country, increasing during periods of higher uncertainties around key economic and political developments. For instance, the terrorist activities of 2011, negative oil price shocks of 2014, the economic recession of 2016, the COVID-19 pandemic, and the country’s election cycles were associated with higher levels of the index. The computed index is useful for economic and policy analyses.

• Item Type: MPRA Paper
• Language: English
• Keywords: News, Policy Uncertainty, Economic Developments
• Subjects: C - Mathematical and Quantitative Methods > C4 - Econometric and Statistical Methods: Special Topics > C43 - Index Numbers and Aggregation; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D80 - General; L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise > L38 - Public Policy

References

Baker, S., Bloom, N. and Davis, S. J., (2016). Measuring economic policy uncertainty. Quarterly Journal of Economics, 131(4), pp. 1593-1636.