Version 1
: Received: 3 October 2018 / Approved: 3 October 2018 / Online: 3 October 2018 (13:25:52 CEST)
How to cite:
Ogbodo, C.J. Components of Savings Accumulation in Nigeria: An Empirical Evidence. Preprints2018, 2018100051. https://doi.org/10.20944/preprints201810.0051.v1
Ogbodo, C.J. Components of Savings Accumulation in Nigeria: An Empirical Evidence. Preprints 2018, 2018100051. https://doi.org/10.20944/preprints201810.0051.v1
Ogbodo, C.J. Components of Savings Accumulation in Nigeria: An Empirical Evidence. Preprints2018, 2018100051. https://doi.org/10.20944/preprints201810.0051.v1
APA Style
Ogbodo, C.J. (2018). Components of Savings Accumulation in Nigeria: An Empirical Evidence. Preprints. https://doi.org/10.20944/preprints201810.0051.v1
Chicago/Turabian Style
Ogbodo, C.J. 2018 "Components of Savings Accumulation in Nigeria: An Empirical Evidence" Preprints. https://doi.org/10.20944/preprints201810.0051.v1
Abstract
The paper investigated the components of savings accumulation in Nigeria over the period 1980 to 2017. Secondary data were collated from World Development Index (WDI). In evaluating the objectives, the study employed the Auto Regressive Distributive Lag (ARDL) and Vector Error Correction Model (VECM) estimation methods. The key findings of the study show that the components of savings identified in literature understudied in the paper specifically, GDP per capita, foreign direct investment, financial deepening, interest rate, inflation rate exchange rate significantly influence savings accumulation in Nigeria either in short run, long run or both. Financial deepening was found statistically significant but influences savings negatively. Inflation rate was statistically insignificant although negative. The result from the VECM causality test revealed that short run and long run causal relationship exist between savings and the afore mentioned components in Nigeria. Hence, the study recommends careful manipulation of the identified savings components in a manner that they will not yield a counterproductive result in the economy rather contribute to the growth of savings and ultimately, the growth of Nigeria economy as a whole. It further recommends that the Nigerian government through its financial institutions encourage savings from both small and big savers which to large extent will assuage the perceived undeserved influence of financial deepening on savings accumulation.
Keywords
Savings Accumulation, Components of Savings; Financial Deepening; ARDL; VECM
Subject
Business, Economics and Management, Economics
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
