EFFECT OF INFLATION ON THE ECONOMIC DEVELOPMENT OF EDO STATE: A CASE STUDY OF OREDO LOCAL GOVERNMENT AREA OF EDO STATE. A RESEARCH PROJECT MATERIAL ON ECONOMICS
ABSTRACT
This study has been designed to investigate the effects of inflation on the economic development of Edo State. Oredo Local Government Area of Edo State was used as a case study. The research study was undertaken with the aim of providing lasting solutions which will help the public and private sectors of the economy to be combat ready to eradicating inflation. In the process of carrying out this study, questionnaires were administered to elicit responses from respondents in four locations. To enhance the effective implementation of the study, three (3) hypotheses were formulated, they include:
- Inflation occurs when demand is greater than the supply of goods and services.
- The financial indiscipline of the government is directly related to the inflationary position of the economy of Edo State.
- The devaluation of the Nation’s currency (naira) has a negative effect on the economy.
The data collected were analyzed and interpreted. The findings were converted into simple percentage as shown in the tables. The hypotheses were conceived on the basis of the findings. The alarming inflationary trend in Edo State has taken over the economy. The naira has lost its value in the labour market, prices of goods and services are on the increase life has become meaningless, worthless, and miserable for the masses. It is therefore important for all hands to be on deck to arrest the ugly trend of inflation in Edo State. The government and the citizens should join hands together to fight the malaise and cankerworm of the ugly trend of inflation in Edo State having achieved this; it will become an economic landmark of advancement, progress, development and breakthrough in all ramifications.
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
Inflation can be defined as persistent rise or increase in the general level of price. Inflation is an economic situation whereby so much money is chasing few goods. It is a problem which affects every country of the world especially developing countries like Nigeria which goes a long way to affecting the states. Inflation is the most serious problem prevailing I our economy today, which seems to be assuming an economic epidemic dimension. As everybody is struggling to survive, prices of goods and services are at a rapid alarming rate of increase. The historical perspective of inflation can be narrowed down to the 1950s and 1960s. a decade before this period was the general inflationary period in the world. It was at its peak in the 1960s when the Nigeria civil war ended as all the resources of the nation were diverted towards the production of arms and ammunitions (weapons of war). Able bodied men who would have engaged in farming were as a result of this, the agricultural sector of the economy suffered, thus the few available goods were distributed in favour of those in the upper class.
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