REVIEW ON SYSTEM DYNAMICS MODELING APPROACH TO MACROECONOMIC VARIABLES IN NIGERIA

Abstract

The application of system dynamics to national economics modelling is becoming more acceptable, particularly for refining economic policies and forecasting. This study is focused on the targeted application of system dynamics modeling to the macroeconomic policy scenarios of Nigeria, spinning toward a transformative paradigm shift that harness this methodology for effective modelling of macroeconomic variables. The article understudies an innovative approach to reviewing economic variables within the framework of national economies, showing the innate potentials of system dynamics to unravel the complexities inherent in dynamics and nonlinear macroeconomics systems. A fundamental focus is placed on the important interplay between constituent elements within the system structure, with particular attention accorded to the pivoted stages of model conceptualization. Through this systematic review, the article serves to provide and enrich the comprehension of macroeconomic system bahaviour in Nigeria, with the ultimate aim of steering the design of more adept impactful macroeconomic policies.