Does the pass‐through of exchange rate and globalization validate the rockets and feathers hypothesis in Nigeria? Evidence from a nonlinear model

The rapid shift in trade policy towards greater openness is theoretically presumed to leave domestic prices vulnerable to the change in exchange rate. This study investigates not only the asymmetric pass‐through of exchange rate but also globalization to consumer price inflation (CPI) in Nigeria and determines whether the pass‐through is consistent with the rockets and feathers hypothesis. Using the Nonlinear Autoregressive Distributed Lag...