The Determinant Of Savings In Nigeria

ABSTRACT

This study examines the determinants of savings in Nigeria   between 1985 -2013, which will enable us to proffer solution for the improvement of savings in the economy, since it is an important component of the economic development of any country. On the basis of available data, the study is of the view that savings output in Nigeria during the period was generally unsatisfactory  and discouraging until of late when it was recognized as an important ingredient for growth and development. It was discovered that real GDP per-capita has the highest effect on financial savings in this research work.

The findings of this research work shows that for savings to rise to a significant level in the economy, incentives on savings should be grossly considered by the public, private and government. Savings here refers to the deposit and liabilities acquired by the organized financial institutions including bank and non-bank financial intermediaries. Policy recommended included: strengthening  the legal framework of the financial sector, creating and maintaining a stable macroeconomic environment for savings and investment, development of  appropriate saving scheme, fostering the development of the money market and the facilitation and  establishment of the financial institutions and their branches in the rural areas, as well as the financial instruments and services they  offer.

TABLE OF CONTENTS

APPROVAL PAGE ………………………………………………….. ii

ACKNOWLEDGMENT ………………………………………………iv

ABSTRACT …….……………………………………………………..v

TABLE OF CONTENTS………………………………………………vi

CHAPTER ONE

INTRODUCTION

CHAPTER TWO

2.1 Stylized evolution of savings in Nigeria ……………………..13-20

2.2 Trend of savings in Nigeria …………………………………..20-29

2.3 Theoretical review and Evidence….………………………….29-37

2.4 Empirical review and Evidence ………………………………37-45

2.5 Factors influencing savings in Nigeria ……………………….45-55

CHAPTER THREE

3.1 Model Specification ………………………………………….56-59

3.2 Method of Evaluation ………………………………………. 59-64

3.3 Economic Apriori Criteria……………………………………65

3.4 Data Required and Source ……………………………………66

CHAPTER FOUR

4.1 ADF Test for Stationary …………………………………………67-70

4.2 Co integration test ……………………………………………….70-71

4.3 Presentation of model results ……………………………………72-73

4.4 Economic interpretation of results ………………………………73-75

4.5 Statistical Criteria for Evaluation of Result (R2)…………………76-78

4.6 Econometric criterion (Second order test) ………………………79-83

4.7 Evaluation of the hypothesis …………………………………….83-84

CHAPTER FIVE

5.1 Summary of Findings ……………………………………………85-86

5.2 Policy Recommendations ………………………………...............87-88

5.3 Conclusion ……………………………………………………….88-89

Bibliography …………………………………………………………90-94

Appendixes ……………………………………………