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Modelling Economic Policy Uncertainty—Examining the Effects of Oil Prices, Global and Domestic Economic Policy Uncertainty on Firm Stability in Nigeria

Olajide O. Oyadeyi

African Development Review2025https://doi.org/10.1111/1467-8268.70012article
ABDC C
Weight
0.41

What the paper says

ABSTRACT The article explored the effects of economic policy uncertainty (EPU) on firm stability in Nigeria. The article makes three contributions to the literature. First, the article examined the impact of global EPU on firm stability. Second, it examined the effects of domestic EPU on firm stability, given the vulnerable nature of the Nigerian economy to both global and domestic shocks. Finally, the study examined the effects of oil prices on the EPU‐firm stability nexus, given the Nigerian economy's vulnerability to oil price fluctuations. Using annual data from 2004 to 2023 and employing the Driscoll and Kraay fixed effects method, the study found that global EPU had no significant effect on firm stability. Furthermore, the findings revealed that domestic EPU hurt firm stability. Additionally, when oil prices induce domestic energy price volatility, they negatively impact firm stability. The sensitivity analysis, conducted using the quantile regression method, supported the main findings. Thus, given the importance of the results, the study recommends ways for firms to become resilient to domestic economic uncertainty by adopting robust risk management techniques and implementing policies that ensure a resilient business environment.

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https://doi.org/https://doi.org/10.1111/1467-8268.70012

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@article{olajide2025,
  title        = {{Modelling Economic Policy Uncertainty—Examining the Effects of Oil Prices, Global and Domestic Economic Policy Uncertainty on Firm Stability in Nigeria}},
  author       = {Olajide O. Oyadeyi},
  journal      = {African Development Review},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1111/1467-8268.70012},
}

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Modelling Economic Policy Uncertainty—Examining the Effects of Oil Prices, Global and Domestic Economic Policy Uncertainty on Firm Stability in Nigeria

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Evidence weight

0.41

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.25 × 0.4 = 0.10
M · momentum0.55 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.