The Impact Of Interest Rate On Other Selected Macroeconomic Variables In Nigeria (1970-2010)

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ABSTRACT
This study was embarked upon with a view to determining the impact of interest rate on other selected macroeconomic variables in Nigeria. Data were sourced from CBN Abuja and NBS. Data were analyzed using the ordinary least square regression (OLS). Results indicate that: Interest rate is inversely related investment and also negatively related with GDP. On the basis of the above stated findings some policy recommendations were made.(1)Government should establish policies that encourage increase in savings deposit rate, reduction in lending rates and also, efficient and reliable financial institutions encourage people to save. (2) The require reserve ratio should be to strengthen the lending rate of commercial banks. (3) We recommend that the government and financial authorities should implement policies that favour income growth such as job creation and increase in salaries and wage increase as these will affect investment significantly.

TABLE OF CONTENTS
Title page
Approval page
Dedication
Acknowledgements
Abstract
Table of contents

CHAPTER ONE
INTRODUCTION
1.1 Background to the study
1.2 Statement of the problem
1.3 Objectives of the study
1.4 Statement of Hypothesis
1.5 Significance of the study
1.6 Scope of the study

CHAPTER TWO
Literature review
2.1 Theoretical framework
2.1.1 Real and Nominal interest rate
2.1.2 Determination of long term and short term interest rate Review
2.1.3 Interest rate and the economic mechanism
2.1.4 Interest rate and the monetary policy
2.1.5 The demand and supply of money
2.1.6 A broad view of macroeconomic stability
2.1.7 Relationship between investment and interest rate
2.1.8 Concept of investment
2.1.9 The relationship between interest rate and economic growth in Nigeria
2.2 Empirical reviews
2.3 Summary of findings

CHAPTER THREE
3.1 Research Methodology
3.1.1 Methodology
3.1.2 Model I: impact of interest rate on GDP
3.1.3 Model II: Impact of interest rate on investment
3.2. Method of evaluation
3.2.1 Evaluation technique based on economic criteria
3.2.2 Evaluation technique based on statistical criteria
3.2.3 Evaluation technique based on econometric criteria

CHAPTER FOUR
PRESENTATION AND ANALYSIS OF RESULT
4.1 OBJECTIVE I: Impact of interest rate on GDP
4.1.1 Evaluation based on economic criteria
4.1.2 Evaluation based on statistical criteria
4.1.3 Evaluation based on econometric criteria
4.2. OBJECTIVE II: Impact of interest rate on investment
4.2.1 Evaluation based on economic criteria
4.2.2. Evaluation based on statistical criteria
4.2.3 Evaluation based on econometric criteria

CHAPTER FIVE
SUMMARY, POLICY RECOMMENDATION AND CONCLUSION
5.1 Summary of findings
5.2 Policy Recommendation
5.3 Conclusion
BIBLIOGRAPHY
APPENDIX A
APPENDIX B
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(2016, 01). The Impact Of Interest Rate On Other Selected Macroeconomic Variables In Nigeria (1970-2010).. ProjectStoc.com. Retrieved 01, 2016, from https://projectstoc.com/read/7127/the-impact-of-interest-rate-on-other-selected-macroeconomic-variables-in-nigeria-1970-2014-4880
"The Impact Of Interest Rate On Other Selected Macroeconomic Variables In Nigeria (1970-2010)." ProjectStoc.com. 01 2016. 2016. 01 2016 <https://projectstoc.com/read/7127/the-impact-of-interest-rate-on-other-selected-macroeconomic-variables-in-nigeria-1970-2014-4880>.
"The Impact Of Interest Rate On Other Selected Macroeconomic Variables In Nigeria (1970-2010).." ProjectStoc.com. ProjectStoc.com, 01 2016. Web. 01 2016. <https://projectstoc.com/read/7127/the-impact-of-interest-rate-on-other-selected-macroeconomic-variables-in-nigeria-1970-2014-4880>.
"The Impact Of Interest Rate On Other Selected Macroeconomic Variables In Nigeria (1970-2010).." ProjectStoc.com. 01, 2016. Accessed 01, 2016. https://projectstoc.com/read/7127/the-impact-of-interest-rate-on-other-selected-macroeconomic-variables-in-nigeria-1970-2014-4880.

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