ABSTRACT
This study is aimed at finding out the determinants of savings in a deregulated economy. The Nigerian experience (1980-2010). The following hypothesis was formulated to guide the study. Ho: Interest rate has no significant impact on national savings in deregulated economy of Nigeria. Ho: inflation rate has no significant impact on national savings in deregulated economy of Nigeria. Ho: Exchange rate has no significant impact on national savings in deregulated economy of Nigeria. The methodology adopted was the simple linear regression using the ordinary least square (OLS) technique. The analysis yielded some interesting findings that national saving which normally leads to investment are being determined by many factors such as interest rate, inflation rate, Exchange rate and many other variables not mentioned in this work. Though, some of these variables have negative relationship with national savings, they in one way or the other affect savings in a deregulated economy of Nigeria. Based on the findings some recommendations were made which include the following: That effort should be geared by government towards encouraging savings which normally increase investment. Having been from the study that inflation rate has a negative relationship with national savings, government and her policy makers should always try to keep inflation rate as low as possible. Interest rate should always be monitored so as to make sure that prospective savers are not discouraged from savings. Exchange rate as one of the independent variables and determinant of savings should always be monitored using appropriate monetary policy variable. Finally, further studies should be encouraged to find other economic variables not mentioned in this study that affect savings as well as investment in Nigeria.
TABLE OF CONTENT
Cover page i
Title Page ii
Approval iii
Dedication
Acknowledgement iv
Abstract v
Table of Content
Chapter One: Introduction
1.1 Background of the Study 1
1.2 Statement of Problem 5
1.3 Objective of the Study 6
1.4 Hypothesis of the Study 6
1.5 Scope of the Study 8
1.6 Significance of the Study 9
Reference 10
Chapter Two: Literature Review
2.1 Theoretical Review 11
2.1.1 The Classical Theory 11
2.1.2 The Keynesian Theory 13
2.1.3 The Post Keynesian Theories 16
2.2 Empirical Literature 20
2.3 Limitation of the Previous Studies 21
References 23
CHAPTER THREE:
Research Design and Methodology
3.1 Research Methodology 24
3.2 Model Specification 25
3.3 Method of Evaluation 26
3.4 Decision Rule 28
3.5 Data Requirement and Sources 29
3.6 Econometrics Software 30
Reference
CHAPTER FOUR:
PRESENTATION AND ANALYSIS OF RESULT
4.1 Presentation of Empirical Results 31
4.2 Examination of the Algebraic Signs of the
Parameter Estimates 32
4.3 Statistical Test of Significance 33
4.4 Evaluation of the Working Hypothesis 37
4.5 Policy Implication of the Result 39
CHAPTER FIVE:
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings 41
5.2 Conclusion 42
5.3 Recommendations 43
Bibliography
Appendix
