The crux of the study is to succinctly identify and examine the macroeconomic determinant of domestic savings in Nigeria. Historical time series data were collated from CBN, NBS, and IMF bulletins for the period 1990 to 2019. The data were tested and analyzed using the unit root test, Johansen co-integration test, and ECM regression technique. The outcome of the ADF unit root test shows that the variables were stationary while the empirical results for Johansen co-integration test conclude that there exists a long-run relationship between the variables. From the ECM regression result, deposit rate and inflation rate in Nigeria negatively and insignificant affect domestic savings in Nigeria. While income level was revealed to have a positive and significant impact on domestic savings in Nigeria. Albeit, financial deepening negatively affect domestic savings in Nigeria but the effect was statistically significant. Conclusively the study shows that the level of income, deposit rate, financial deepening, and inflation rate determines the volume of domestic savings in Nigeria – positively or negatively. It was recommended among others that the government and monetary authorities should set sound policies and a fertile environment to foster domestic savings that will help to increase the level of economic growth in Nigeria. Keywords: domestic savings, financial deepening, financial stability, economic growth
This study examined the relationship between financial sector liberalization and agricultural sector output in Nigeria using annual data spanning the period 1986-2020. Specifically, the objectives of the study are to examine the relationship between lending rate, exchange rate, commercial bank credit to agriculture, inflation rate and agricultural sector output in Nigeria. Ex-post facto research design was employed and the annual time series data were collated from Central Bank of Nigeria (CBN) Statistical Bulletin. The econometrics methods of unit root, co-integration and error correction mechanism were used for the analyses. The outcome of the ADF unit root test show that the variables were stationary. Also the co-integration result showed that there exist co-integration amongst the variables in the model. The results from Error Correction Model indicates that lending rate and inflation rate have a negative relationship on agricultural sector output while exchange rate and commercial bank credit to agriculture have positive relationship on agricultural sector output. Based on these results, this study recommends that government and policy makers in Nigerian should initial policies that will boost investments in the agricultural sector through direct provision of credits to agriculturist and banks should also lend at a very low and subsidized interest rate to enable farmers’ access agricultural loans that will boost agricultural productivity in the economy.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.