This document summarizes a study examining the relationship between private savings and economic growth in Nigeria from 1970 to 2007. The study aims to analyze trends in Nigerian savings behavior, evaluate factors influencing private savings rates, and assess how savings impacts economic performance. It employs an error-correction model to analyze how income growth, interest rates, fiscal policy, and financial development impact private savings rates. The results show that savings rates rise with disposable income growth and interest rates on bank deposits. Government savings do not appear to crowd out private savings, suggesting improved fiscal balances could substantially increase national savings rates. Financial development has a negative but insignificant impact on savings behavior in Nigeria.
An empirical test of the relationship between private savingsAlexander Decker
This study examines the relationship between private savings and economic growth in Kenya over time. It employs econometric techniques including cointegration and Granger causality tests to analyze long-run and short-run relationships using data from 1990-2013. The literature review discusses mixed findings from previous studies on the direction of causality between savings and growth. The study aims to test two hypotheses: 1) private savings cause economic growth, or 2) economic growth causes private savings in Kenya. The results will help inform government policies around promoting savings or growth.
1. The document analyzes the relationship between domestic savings, investment, and economic growth in Nigeria from 1970-2015.
2. It finds that domestic savings, investment, and GDP growth were low over the period studied, with fluctuating trends.
3. The study employs various econometric techniques including unit root tests, cointegration tests, vector error correction models, and Granger causality tests.
4. The results show domestic investment has a positive and significant long-run impact on economic growth in Nigeria. There is also bidirectional short-run causality between domestic investment and economic growth.
This document summarizes a study that analyzes the relationship between domestic savings and economic growth in Nigeria from 1970 to 2006. It finds that while domestic savings as a percentage of GDP has generally been higher than investment, economic growth has remained low. It concludes that the main problem is not mobilizing savings, but rather the intermediation between savings and investment. It recommends that the government adopt policies to improve intermediation in the economy in order to enhance the link between savings and growth.
This document summarizes macroeconomic performance in India across four areas: foreign capital flows, human development indicators, the power sector, and globalization/privatization/liberalization. It provides details on foreign portfolio flows, foreign institutional investments, gender equality, healthcare, education, the power industry, and reforms related to capital flows and the economy. Key points include gradual liberalization of capital flows, a shift from debt to non-debt flows, improvements in gender equality and health/education indicators, issues facing the power sector, and the impact of reforms on foreign investment.
Macroeconomic stability in the DRC: highlighting the role of exchange rate an...IJRTEMJOURNAL
This study is part of a macroeconomic approach and seeks to identify the role of the rate of
economic growth and the exchange rate in controlling the macroeconomic framework. The approaches adopted
in this paper are part of Keynesian thinking on macroeconomic stability using the macroeconomic stability
index proposed by Burnside and Dollars (2004) and A. Amine (2005). Our results argue that economic growth
is causing macroeconomic stability and that the exchange rate is negatively and significantly accounting for
macroeconomic stability in the Democratic Republic of Congo.
Assessing the Impact of Human Capital, Energy Consumption and Environment on ...ijtsrd
This paper investigates the impact of human capital development life expectancy and labor productivity , energy usage, and environmental factors carbon dioxide emissions on the per capita economic sustainable development in Malaysia. We employed the adjusted net savings per capita World Bank to represent the economically sustainable development path in Malaysia. With the assumptions of possible structural breaks along the years of between 1971, and 2013, the Zivot Andrews unit root test was performed on all of the variables concerned. Following the bounds test method, we proposed the auto regressive distributed lag ARDL model for the per capita sustainable development path in Malaysia based on the impact of human capital development and environmental factors. We found that life expectancy, carbon emissions and energy usage have mixed significant effects on adjusted net savings per capita in both the short run and long run in Malaysia. Faridah Pardi | Mohammad Yuzaimi Yasin | Sutina Junos "Assessing the Impact of Human Capital, Energy Consumption and Environment on Sustainable Development Model of Malaysia" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-6 , October 2020, URL: https://www.ijtsrd.com/papers/ijtsrd33586.pdf Paper Url: https://www.ijtsrd.com/economics/development-economics/33586/assessing-the-impact-of-human-capital-energy-consumption-and-environment-on-sustainable-development-model-of-malaysia/faridah-pardi
Financial liberalization and economic growth implications for the conduct of...Alexander Decker
This document summarizes a study that examined the impact of financial liberalization on economic growth in Nigeria. It provides background on theories around how financial liberalization can impact capital accumulation, productivity, and economic growth. The study used cointegration methods to analyze the relationship between financial liberalization and growth in Nigeria. The results showed that financial liberalization had some impact on growth, but not a remarkable impact, possibly due to an underdeveloped financial market and inadequate oversight. The study recommends better monitoring of commercial banks to boost Nigeria's real economic sector.
An empirical test of the relationship between private savingsAlexander Decker
This study examines the relationship between private savings and economic growth in Kenya over time. It employs econometric techniques including cointegration and Granger causality tests to analyze long-run and short-run relationships using data from 1990-2013. The literature review discusses mixed findings from previous studies on the direction of causality between savings and growth. The study aims to test two hypotheses: 1) private savings cause economic growth, or 2) economic growth causes private savings in Kenya. The results will help inform government policies around promoting savings or growth.
1. The document analyzes the relationship between domestic savings, investment, and economic growth in Nigeria from 1970-2015.
2. It finds that domestic savings, investment, and GDP growth were low over the period studied, with fluctuating trends.
3. The study employs various econometric techniques including unit root tests, cointegration tests, vector error correction models, and Granger causality tests.
4. The results show domestic investment has a positive and significant long-run impact on economic growth in Nigeria. There is also bidirectional short-run causality between domestic investment and economic growth.
This document summarizes a study that analyzes the relationship between domestic savings and economic growth in Nigeria from 1970 to 2006. It finds that while domestic savings as a percentage of GDP has generally been higher than investment, economic growth has remained low. It concludes that the main problem is not mobilizing savings, but rather the intermediation between savings and investment. It recommends that the government adopt policies to improve intermediation in the economy in order to enhance the link between savings and growth.
This document summarizes macroeconomic performance in India across four areas: foreign capital flows, human development indicators, the power sector, and globalization/privatization/liberalization. It provides details on foreign portfolio flows, foreign institutional investments, gender equality, healthcare, education, the power industry, and reforms related to capital flows and the economy. Key points include gradual liberalization of capital flows, a shift from debt to non-debt flows, improvements in gender equality and health/education indicators, issues facing the power sector, and the impact of reforms on foreign investment.
Macroeconomic stability in the DRC: highlighting the role of exchange rate an...IJRTEMJOURNAL
This study is part of a macroeconomic approach and seeks to identify the role of the rate of
economic growth and the exchange rate in controlling the macroeconomic framework. The approaches adopted
in this paper are part of Keynesian thinking on macroeconomic stability using the macroeconomic stability
index proposed by Burnside and Dollars (2004) and A. Amine (2005). Our results argue that economic growth
is causing macroeconomic stability and that the exchange rate is negatively and significantly accounting for
macroeconomic stability in the Democratic Republic of Congo.
Assessing the Impact of Human Capital, Energy Consumption and Environment on ...ijtsrd
This paper investigates the impact of human capital development life expectancy and labor productivity , energy usage, and environmental factors carbon dioxide emissions on the per capita economic sustainable development in Malaysia. We employed the adjusted net savings per capita World Bank to represent the economically sustainable development path in Malaysia. With the assumptions of possible structural breaks along the years of between 1971, and 2013, the Zivot Andrews unit root test was performed on all of the variables concerned. Following the bounds test method, we proposed the auto regressive distributed lag ARDL model for the per capita sustainable development path in Malaysia based on the impact of human capital development and environmental factors. We found that life expectancy, carbon emissions and energy usage have mixed significant effects on adjusted net savings per capita in both the short run and long run in Malaysia. Faridah Pardi | Mohammad Yuzaimi Yasin | Sutina Junos "Assessing the Impact of Human Capital, Energy Consumption and Environment on Sustainable Development Model of Malaysia" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-6 , October 2020, URL: https://www.ijtsrd.com/papers/ijtsrd33586.pdf Paper Url: https://www.ijtsrd.com/economics/development-economics/33586/assessing-the-impact-of-human-capital-energy-consumption-and-environment-on-sustainable-development-model-of-malaysia/faridah-pardi
Financial liberalization and economic growth implications for the conduct of...Alexander Decker
This document summarizes a study that examined the impact of financial liberalization on economic growth in Nigeria. It provides background on theories around how financial liberalization can impact capital accumulation, productivity, and economic growth. The study used cointegration methods to analyze the relationship between financial liberalization and growth in Nigeria. The results showed that financial liberalization had some impact on growth, but not a remarkable impact, possibly due to an underdeveloped financial market and inadequate oversight. The study recommends better monitoring of commercial banks to boost Nigeria's real economic sector.
This document analyzes the impact of revenue allocation formulas on economic growth in Nigeria. It finds that past revenue allocation formulas have affected Nigeria's economic growth and development path. There is a need to address problems with more efficient revenue allocation to reduce wastage and mismanagement of funds. The revenue allocation formula influences capital formation, employment, and economic growth. Changes to Nigeria's internal structure through increased state creation have distorted the revenue allocation formula and weakened federalism. The objectives of the study are to examine how past revenue allocation formulas have impacted economic growth in Nigeria and propose solutions to problems in the formula to support rapid economic growth.
The document discusses China's economic development and unemployment rate. It notes that China experienced rapid economic growth after economic reforms in 1978. China joined the WTO in 2001 and became the world's factory due to its large labor force and resources. In 2009, China surpassed Japan to become the second largest economy in the world. However, inflation increased to its highest level from 2009 to 2011 despite government efforts. While China has high GDP growth, its average worker income remains below international standards, and economic development has not always benefited workers.
The indicators of indian economy ppt @ mba 2009Babasab Patil
The document discusses various leading economic indicators of the Indian economy such as GDP growth trends, inflation rates, interest rates, credit levels, exports, imports, foreign investment, stock market performance, monsoon rainfall, and development indicators. Leading indicators can provide useful insights into the future direction of the economy by signaling turning points in business cycles ahead of changes in broader economic conditions. Monitoring a basket of leading indicators allows for more accurate forecasting of the overall performance of the Indian economy.
This document outlines the course objectives and topics for a course on Pakistan's economic issues. The course aims to provide students with an understanding of key sectors of Pakistan's economy including agriculture, industry, financial and social sectors as well as current policies. Topics to be covered include the development of Pakistan's economy over the past 50 years, the agriculture, manufacturing and banking sectors, fiscal and monetary policy, the budget, fiscal deficit, and social issues. Recommended textbooks and resources are also provided.
This document summarizes a study that investigated the relationship between savings and investment in India from 1950-51 to 2008-09. Using annual data, the study found evidence of cointegration between savings and investment, suggesting a long-run equilibrium relationship. However, the time series showed that investment remained greater than savings over the period studied. The study contributes to the ongoing discussion among economists about the relationship between savings and investment and economic growth.
Economic challenges face by Pakistan"s economy and their solutions (1)Muhammad Zubair
Pakistan's economy faces several challenges including a large debt burden requiring significant debt servicing payments, balance of payments deficits as imports exceed exports, low domestic savings rates, government spending exceeding revenues, a shrinking share of world trade, chronic energy shortages exacerbated by high load shedding, and damage from frequent natural disasters. Addressing these economic issues will be important for Pakistan to achieve greater economic stability and growth.
This document summarizes an undergraduate student research project that aims to identify foreign trade partners that could help stabilize the economy of Erie, Pennsylvania. The student analyzes international and local economic data to determine which countries have business cycles that are counter-cyclical to Erie's economy. The student then examines Erie's employment across different industries to identify export industries. Finally, the student analyzes specific continents and countries to identify trade partners whose counter-cyclical cycles could help absorb Erie's economic fluctuations through trade. The goal is to build upon past research identifying countries that meet this criterion for stabilizing Erie's regional economy.
11.the impact of monetary policy on micro economy and private investment in n...Alexander Decker
This document summarizes a research study that evaluated the impact of monetary policy on micro-economics and private investment in Nigeria. Correlation analysis showed a significant relationship between private investment and money supply, credit, GDP, inflation, and exchange rates. Money supply was found to be a more effective monetary policy instrument than interest rates in influencing private investment in Nigeria. The study aimed to examine the effectiveness of different monetary policy tools, including money supply, interest rates, credit, GDP, inflation, and exchange rates, on aggregate private investment in Nigeria.
China has the second largest economy and is the most populous country. It has experienced rapid economic growth averaging 10% over the last 30 years due to reforms allowing private sector growth and foreign investment. China uses fiscal and monetary policies like government spending on infrastructure, adjusting required reserve ratios, and managing the yuan's exchange rate to influence economic stability and growth. These allowed China to recover quickly from the 2008 financial crisis through measures such as lowering interest rates and enacting a $650 billion stimulus package. While still having some state-owned sectors, China has transitioned significantly from a centrally planned to more market-based economy.
An Analysis of the Relationship between Fiscal Deficits and Selected Macroeco...IOSR Journals
This study investigates the relationship that exists between the Government Deficit Spending and selected macroeconomic variables such as Gross Domestic Product (GDP), Exchange Rate, Inflation, Money Supply and Lending Interest Rate. The period covered is 1970 (when the civil war ended) and 2011. Ordinary Least Squares (OLS) technique was adopted to analyze the relationships. The study concludes that Government Deficit Spending (GDS) has positive significant relationship with GDP. Government Deficit Spending also has positive significant relationship with Exchange Rate, Inflation, and Money Supply. Government Deficit has negative significant relationship with Lending Interest Rate and most likely crowd-out the private sector by raising the cost of funds. Deficit spending has been known to have adverse effects on the economy and government is advised to curtail excessive deficit spending. It is recommended that further research is done to establish other variables that are affected by government deficit spending.
Stimulation of foreign resources into Nigeria is to transform the economy as neoclassical economics promised. Successive governments in Nigeria usually attract large inflows, yet, small proportion is usually distributed to the agricultural sector despite the importance of this sector and the need for such capital. This study therefore focuses on the policy implication of sectoral distribution of foreign capital for the agricultural sector in Nigeria. The main objective is to examine the contribution of foreign capital to growth in the agricultural sector. Secondary data are employed for analysis. The relevant data are obtained from Central Bank of Nigeria (CBN) Statistical Bulletin. Simple percentages, tables and charts are the tools of analysis, while regression and correlation techniques are the inferential statistical approaches applied. Findings show that distribution of capital inflow in Nigeria does not reflect theoretical position that capital should flow to sectors of need, particularly, where there are abundant raw materials. This theoretical postulation has not been upheld in Nigeria where capital inflow was found to be randomly distributed. This has had negative effect on the contribution of foreign capital to growth in agricultural sector. It is therefore recommended that government should pursue policies like tax holidays and production subsidies for foreign investments in the agricultural sector.
The document analyzes the effects of savings and investments on economic growth in Turkey from 1975-2010. It finds that in the long run, savings and investments are statistically correlated with economic growth based on cointegration and error correction modeling. However, in the short run neither savings nor investments significantly impact economic growth as expected, according to Wald test results. The study uses various econometric methods like unit root testing, lag length determination, Johansen cointegration testing, and Granger causality testing to analyze the relationships between GDP, savings, and investments.
Empirical Analysis of Fiscal Dominance and the Conduct of Monetary Policy in ...AJHSSR Journal
The study empirically investigates fiscal dominance and the conduct of monetary policy in
Nigeria, using quarterly data from 1986Q1 to 2016Q4. It adopts the vector error correction mechanism (VECM)
and cointegration technique to analyze the data and make inference. The findings reveal that there is no
evidence of fiscal dominance in Nigeria. The empirical results show that budget deficit, domestic debt and
money supply have no significant influence on the average price level. However, budget deficit and domestic
debt are shown to have significant influence on money supply, but only in the short-run. The policy implication
is that the government should enforce fiscal discipline through the appropriate institution and the Central Bank
should be given autonomy to perform the primary function of long-term price stability, among other functions.
This study examined the effect interest rate on economic growth in Nigeria. Augmented Dickey – Fuller (ADF), Bound Test and Autoregressive Distributed Lag (ARDL) were employed to examine the effect of impact of interest rate on economic growth in Nigeria. The unit root test showed gross domestic product was 1(0) while interest rate, investment and gross capital formation were 1(1). The result of the Bound Test indicated long run relationship among the macroeconomic variables employed in the study. The result of the ARDL indicated that interest rate had negative effect on economic growth both in short run and long run. However, in the long run investment and gross capital formation were established to have positive effect on economic growth with gross capital formation being insignificant. It was concluded that interest rate has a macroeconomic tool is not effective in stimulating economic growth in Nigeria. It was recommended that the level of interest rate should be adequately controlled for the purpose of stimulating economic growth without inflationary pressure. Finally, robust macroeconomic policies aimed at ensuring economic stability should be formulated in order to increase capital formation and attract investment in order to promote economic growth.
An introduction of Japan’s "Abenomics"--the economic policies advocated by the Prime Minister of Japan, Shinzo Abe, since December 2012, based upon “three arrows” of monetary policies, fiscal policies and structural reforms. It summarises the policies conducted since it started and the current results.
Assessment of saving culture among households in ethiopiaAlexander Decker
This document summarizes a study that assessed saving culture among households in Ethiopia. The study aimed to investigate the causes of poor saving habits in Ethiopia where the saving rate is only 9.5% of GDP, one of the lowest in the world. A survey was conducted of 544 households in three major cities. The results showed that despite some improvement, saving culture in Ethiopia remains poor. Key causes identified included lack of appropriate saving products, low incomes, high debt levels, low interest rates, and high inflation. The study recommends actions like financial education, income stabilization, incentivizing savings, and reforming financial institutions to promote savings in Ethiopia.
Abstract:Savings are necessary if investment, and hence economic growth and development are to be stimulated. The paper looks at the broad set of possible determinants of private savings in Lesotho using annual time series data for the period 1980-2010. The paper estimates the saving rate function and Error-Correction modelling is used to avoid spurious results. The results indicate that public savings are important in explaining changes in private savings, both in the short-run and long-run and that the terms of trade negatively influence private savings in Lesotho in the long-run.
An empirical test of the relationship between private savingsAlexander Decker
This study examines the relationship between private savings and economic growth in Kenya over time. It employs econometric techniques including cointegration and Granger causality tests to analyze long-run and short-run relationships between real GDP and household savings. The literature review discusses prior studies that have found various relationships between savings and growth, including evidence of savings-led growth, growth-driven savings, and bidirectional causality. The study aims to determine the direction of causality in Kenya in order to inform government policies regarding private savings and economic growth.
This document analyzes the impact of revenue allocation formulas on economic growth in Nigeria. It finds that past revenue allocation formulas have affected Nigeria's economic growth and development path. There is a need to address problems with more efficient revenue allocation to reduce wastage and mismanagement of funds. The revenue allocation formula influences capital formation, employment, and economic growth. Changes to Nigeria's internal structure through increased state creation have distorted the revenue allocation formula and weakened federalism. The objectives of the study are to examine how past revenue allocation formulas have impacted economic growth in Nigeria and propose solutions to problems in the formula to support rapid economic growth.
The document discusses China's economic development and unemployment rate. It notes that China experienced rapid economic growth after economic reforms in 1978. China joined the WTO in 2001 and became the world's factory due to its large labor force and resources. In 2009, China surpassed Japan to become the second largest economy in the world. However, inflation increased to its highest level from 2009 to 2011 despite government efforts. While China has high GDP growth, its average worker income remains below international standards, and economic development has not always benefited workers.
The indicators of indian economy ppt @ mba 2009Babasab Patil
The document discusses various leading economic indicators of the Indian economy such as GDP growth trends, inflation rates, interest rates, credit levels, exports, imports, foreign investment, stock market performance, monsoon rainfall, and development indicators. Leading indicators can provide useful insights into the future direction of the economy by signaling turning points in business cycles ahead of changes in broader economic conditions. Monitoring a basket of leading indicators allows for more accurate forecasting of the overall performance of the Indian economy.
This document outlines the course objectives and topics for a course on Pakistan's economic issues. The course aims to provide students with an understanding of key sectors of Pakistan's economy including agriculture, industry, financial and social sectors as well as current policies. Topics to be covered include the development of Pakistan's economy over the past 50 years, the agriculture, manufacturing and banking sectors, fiscal and monetary policy, the budget, fiscal deficit, and social issues. Recommended textbooks and resources are also provided.
This document summarizes a study that investigated the relationship between savings and investment in India from 1950-51 to 2008-09. Using annual data, the study found evidence of cointegration between savings and investment, suggesting a long-run equilibrium relationship. However, the time series showed that investment remained greater than savings over the period studied. The study contributes to the ongoing discussion among economists about the relationship between savings and investment and economic growth.
Economic challenges face by Pakistan"s economy and their solutions (1)Muhammad Zubair
Pakistan's economy faces several challenges including a large debt burden requiring significant debt servicing payments, balance of payments deficits as imports exceed exports, low domestic savings rates, government spending exceeding revenues, a shrinking share of world trade, chronic energy shortages exacerbated by high load shedding, and damage from frequent natural disasters. Addressing these economic issues will be important for Pakistan to achieve greater economic stability and growth.
This document summarizes an undergraduate student research project that aims to identify foreign trade partners that could help stabilize the economy of Erie, Pennsylvania. The student analyzes international and local economic data to determine which countries have business cycles that are counter-cyclical to Erie's economy. The student then examines Erie's employment across different industries to identify export industries. Finally, the student analyzes specific continents and countries to identify trade partners whose counter-cyclical cycles could help absorb Erie's economic fluctuations through trade. The goal is to build upon past research identifying countries that meet this criterion for stabilizing Erie's regional economy.
11.the impact of monetary policy on micro economy and private investment in n...Alexander Decker
This document summarizes a research study that evaluated the impact of monetary policy on micro-economics and private investment in Nigeria. Correlation analysis showed a significant relationship between private investment and money supply, credit, GDP, inflation, and exchange rates. Money supply was found to be a more effective monetary policy instrument than interest rates in influencing private investment in Nigeria. The study aimed to examine the effectiveness of different monetary policy tools, including money supply, interest rates, credit, GDP, inflation, and exchange rates, on aggregate private investment in Nigeria.
China has the second largest economy and is the most populous country. It has experienced rapid economic growth averaging 10% over the last 30 years due to reforms allowing private sector growth and foreign investment. China uses fiscal and monetary policies like government spending on infrastructure, adjusting required reserve ratios, and managing the yuan's exchange rate to influence economic stability and growth. These allowed China to recover quickly from the 2008 financial crisis through measures such as lowering interest rates and enacting a $650 billion stimulus package. While still having some state-owned sectors, China has transitioned significantly from a centrally planned to more market-based economy.
An Analysis of the Relationship between Fiscal Deficits and Selected Macroeco...IOSR Journals
This study investigates the relationship that exists between the Government Deficit Spending and selected macroeconomic variables such as Gross Domestic Product (GDP), Exchange Rate, Inflation, Money Supply and Lending Interest Rate. The period covered is 1970 (when the civil war ended) and 2011. Ordinary Least Squares (OLS) technique was adopted to analyze the relationships. The study concludes that Government Deficit Spending (GDS) has positive significant relationship with GDP. Government Deficit Spending also has positive significant relationship with Exchange Rate, Inflation, and Money Supply. Government Deficit has negative significant relationship with Lending Interest Rate and most likely crowd-out the private sector by raising the cost of funds. Deficit spending has been known to have adverse effects on the economy and government is advised to curtail excessive deficit spending. It is recommended that further research is done to establish other variables that are affected by government deficit spending.
Stimulation of foreign resources into Nigeria is to transform the economy as neoclassical economics promised. Successive governments in Nigeria usually attract large inflows, yet, small proportion is usually distributed to the agricultural sector despite the importance of this sector and the need for such capital. This study therefore focuses on the policy implication of sectoral distribution of foreign capital for the agricultural sector in Nigeria. The main objective is to examine the contribution of foreign capital to growth in the agricultural sector. Secondary data are employed for analysis. The relevant data are obtained from Central Bank of Nigeria (CBN) Statistical Bulletin. Simple percentages, tables and charts are the tools of analysis, while regression and correlation techniques are the inferential statistical approaches applied. Findings show that distribution of capital inflow in Nigeria does not reflect theoretical position that capital should flow to sectors of need, particularly, where there are abundant raw materials. This theoretical postulation has not been upheld in Nigeria where capital inflow was found to be randomly distributed. This has had negative effect on the contribution of foreign capital to growth in agricultural sector. It is therefore recommended that government should pursue policies like tax holidays and production subsidies for foreign investments in the agricultural sector.
The document analyzes the effects of savings and investments on economic growth in Turkey from 1975-2010. It finds that in the long run, savings and investments are statistically correlated with economic growth based on cointegration and error correction modeling. However, in the short run neither savings nor investments significantly impact economic growth as expected, according to Wald test results. The study uses various econometric methods like unit root testing, lag length determination, Johansen cointegration testing, and Granger causality testing to analyze the relationships between GDP, savings, and investments.
Empirical Analysis of Fiscal Dominance and the Conduct of Monetary Policy in ...AJHSSR Journal
The study empirically investigates fiscal dominance and the conduct of monetary policy in
Nigeria, using quarterly data from 1986Q1 to 2016Q4. It adopts the vector error correction mechanism (VECM)
and cointegration technique to analyze the data and make inference. The findings reveal that there is no
evidence of fiscal dominance in Nigeria. The empirical results show that budget deficit, domestic debt and
money supply have no significant influence on the average price level. However, budget deficit and domestic
debt are shown to have significant influence on money supply, but only in the short-run. The policy implication
is that the government should enforce fiscal discipline through the appropriate institution and the Central Bank
should be given autonomy to perform the primary function of long-term price stability, among other functions.
This study examined the effect interest rate on economic growth in Nigeria. Augmented Dickey – Fuller (ADF), Bound Test and Autoregressive Distributed Lag (ARDL) were employed to examine the effect of impact of interest rate on economic growth in Nigeria. The unit root test showed gross domestic product was 1(0) while interest rate, investment and gross capital formation were 1(1). The result of the Bound Test indicated long run relationship among the macroeconomic variables employed in the study. The result of the ARDL indicated that interest rate had negative effect on economic growth both in short run and long run. However, in the long run investment and gross capital formation were established to have positive effect on economic growth with gross capital formation being insignificant. It was concluded that interest rate has a macroeconomic tool is not effective in stimulating economic growth in Nigeria. It was recommended that the level of interest rate should be adequately controlled for the purpose of stimulating economic growth without inflationary pressure. Finally, robust macroeconomic policies aimed at ensuring economic stability should be formulated in order to increase capital formation and attract investment in order to promote economic growth.
An introduction of Japan’s "Abenomics"--the economic policies advocated by the Prime Minister of Japan, Shinzo Abe, since December 2012, based upon “three arrows” of monetary policies, fiscal policies and structural reforms. It summarises the policies conducted since it started and the current results.
Assessment of saving culture among households in ethiopiaAlexander Decker
This document summarizes a study that assessed saving culture among households in Ethiopia. The study aimed to investigate the causes of poor saving habits in Ethiopia where the saving rate is only 9.5% of GDP, one of the lowest in the world. A survey was conducted of 544 households in three major cities. The results showed that despite some improvement, saving culture in Ethiopia remains poor. Key causes identified included lack of appropriate saving products, low incomes, high debt levels, low interest rates, and high inflation. The study recommends actions like financial education, income stabilization, incentivizing savings, and reforming financial institutions to promote savings in Ethiopia.
Abstract:Savings are necessary if investment, and hence economic growth and development are to be stimulated. The paper looks at the broad set of possible determinants of private savings in Lesotho using annual time series data for the period 1980-2010. The paper estimates the saving rate function and Error-Correction modelling is used to avoid spurious results. The results indicate that public savings are important in explaining changes in private savings, both in the short-run and long-run and that the terms of trade negatively influence private savings in Lesotho in the long-run.
An empirical test of the relationship between private savingsAlexander Decker
This study examines the relationship between private savings and economic growth in Kenya over time. It employs econometric techniques including cointegration and Granger causality tests to analyze long-run and short-run relationships between real GDP and household savings. The literature review discusses prior studies that have found various relationships between savings and growth, including evidence of savings-led growth, growth-driven savings, and bidirectional causality. The study aims to determine the direction of causality in Kenya in order to inform government policies regarding private savings and economic growth.
Determinants of Savings Among Members of Cooperative Societies in Anambra Sta...ijtsrd
This study examines the determinants of savings among members of cooperative societies in Anambra state. Specifically, it provides empirical evidence on the socio-economic characteristics of members of the co-operatives and ascertains which of the socio-economic characteristics significantly determine savings mobilization among members of the cooperative groups. It also ascertained the range of savings of the members of the cooperative groups and identified the cooperative members' reasons for saving. Data for the study were obtained from 100 cooperative members with the aid of well structured questionnaires through a simple random sampling technique. Data were analyzed using descriptive statistics and multiple regression analysis. Results obtained showed that on the average the members saved N12, 241.57 every month. The average monthly savings is encouraging considering the fact that their monthly income is low. The major reasons for saving as indicated by the respondents include Security, Statutory as Cooperative Member, Investment and to obtain Loans. This is obtained from their mean statistics of 4.00, 3.87, 3.53 and 3.00 respectively. The R2 value of 0.916 obtains indicates that about 91.6 of observed variation in savings by farmers could be attributed to the combined influence of the various independent variables included in the regression equation. The F-statistic with 95.342 was significant at 0.000 levels of significance. There is a significant variation in the range of savings of the members of the cooperative groups. Socio-economic characteristics of members significantly determine the savings of members of cooperative societies in the state. Based on the analysis and findings of this study, the researcher therefore recommends that To increase the farmers' savings potentials, saving should be made statutory as cooperative member. The members should also be encouraged to invest more no matter how small. It is good to save but members should have predefined reasons before saving to enable them make judicious use of whatever amount saved. There is the need to improve the livelihood strategies of the farmers to bridge the noticeable gap that exist in the farmers' savings range. Anigbogu, Theresa Ukamaka | , Chikodiri Scholastica | Okeke, Uju M "Determinants of Savings Among Members of Cooperative Societies in Anambra State, Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-1 , December 2018, URL: http://www.ijtsrd.com/papers/ijtsrd19075.pdf Direct URL: http://www.ijtsrd.com/management/business-economics/19075/determinants-of-savings-among-members-of-cooperative-societies-in-anambra-state-nigeria/anigbogu-theresa-ukamaka
The study is on the effect of Net capital inflow on inclusive growth in Nigeria. This study seeks to deepen the understanding on how capital inflow creates opportunity for inclusive growth in Nigeria through increase in GDP per capita. The objective of the study were to : determine the effect of Net capital inflow , Net foreign direct investment and trade openness on inclusive growth in Nigeria. The study employed the time series data in its analysis. The period of analysis spanned through 1980-2015 and the dataset required for the analysis were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin and National bureau of statistics publications. The study conducted trend analysis, descriptive analysis. The data were also tested for stationarity using the Augmented Dickey Fuller (ADF) unit root test and Ordinary Least Square (OLS) analytical techniques, cointegration test and error correction mechanism. It was evident from the unit root test that the variables were fractionally integrated while the cointegration test reveals that long run relationship exists among the variables. The findings equally reveal that capital inflow exerts significant negative influence on GDP per capita. This could be attributed to the problem of managing external capital flows which has been sub-optimal in most developing economies including Nigeria. The implication of this finding is that the perceived benefits that are associated with capital inflows tend not to hold sway in Nigeria over the sampled period which may be attributed to institutional and governance failure. Owing to the findings, this study recommends for the adoption of investment friendly policies and ensure transparency and good governance, appropriate economic management practices capable of supporting reforms in the Nigerian financial system and guide international capital inflows to ensure that the associated economic turnarounds are people-centered.
A time series analysis of the determinants of savings in namibiaAlexander Decker
This document summarizes a study on the determinants of savings in Namibia from 1991 to 2012. It reviews previous literature on savings determinants in developing countries. The study uses time series analysis including unit root tests, cointegration, and error correction models to analyze the relationship between savings and variables like income, inflation, population growth, deposit rates, and financial deepening in Namibia. The results found inflation and income have a positive impact on savings, while population growth negatively impacts savings. Deposit rates and financial deepening were found to have no significant impact. The study reinforces previous work and emphasizes the importance of improving income levels to achieve higher savings rates in Namibia.
A time series analysis of the determinants of savings in namibiaAlexander Decker
This document summarizes a study on the determinants of savings in Namibia from 1991 to 2012. It reviews previous literature on savings determinants in developing countries. The study uses time series analysis including unit root tests, cointegration, and error correction models to analyze the relationship between savings and variables like income, inflation, population growth, deposit rates, and financial deepening in Namibia. The results found inflation and income have a positive impact on savings, while population growth negatively impacts savings. Deposit rates and financial deepening were found to have no significant impact. The study reinforces previous work and emphasizes the importance of improving income levels to achieve higher savings rates in Namibia.
The nexus between budget deficit and inflation in the nigerianAlexander Decker
This research paper examines the relationship between budget deficits and inflation in Nigeria from 1980 to 2009. It uses time series data and the vector error correction mechanism to analyze the correlation between the two macroeconomic variables. The results show there is a significant causal relationship from budget deficits to inflation, but not from inflation to budget deficits, indicating a unidirectional causality. This means budget deficits directly and indirectly affect inflation through increases in the money supply in the Nigerian economy. The paper recommends adequate monetary policy to balance the role of money supply in influencing both budget deficits and inflation, given the unidirectional relationship found between the two variables.
The impact of interest rates on the development of an emerging market empiric...Alexander Decker
This document summarizes a journal article about the impact of interest rates on the development of emerging markets, using Nigeria as an empirical case study. It acknowledges people who assisted with the research. The abstract indicates that interest rates are difficult to forecast and impact borrowing costs for businesses. While higher rates could encourage savings in the long-run, current high rates in Nigeria of 12% are negatively impacting growth. The literature review discusses how inflation can stimulate or deter human capital formation and how interest rates influence savings, investment, and financial intermediation. It recommends Nigeria adopt pragmatic policies to reduce lending rates to single digits to boost the economy.
4.[30 39]long run relationship between private investment and monetary policy...Alexander Decker
This document summarizes a research journal article that investigates the long-run relationship between private investment and monetary policy in Nigeria from 1980-2009. It uses vector auto-regression techniques to test the relationship between private investment, GDP, money supply, and other factors. The results showed that money supply has a negative short-run impact on private investment, while GDP and other factors have a positive impact. In the long-run, all the variables became statistically significant. This implies that monetary policy in Nigeria has positively affected the growth of private investment and the economy over the long term. The document reviews several other studies on the relationship between financial development, private investment, and economic growth.
4.[30 39]long run relationship between private investment and monetary policy...Alexander Decker
This study investigated the long-run relationship between private investment and monetary policy in Nigeria from 1981 to 2009. The results of the vector autoregression model showed that in the short-run, money supply had a negative but insignificant impact on private investment, while GDP and other factors had a positive impact. However, in the long-run all variables became statistically significant, with money supply positively affecting private investment growth. This implies that monetary policy in Nigeria has positively influenced the growth of private investment over the long-run. The study concluded that private investment and monetary policy have been negatively related in the short-run in terms of money supply, but positively related based on GDP and other factors in the long-run.
11.long run relationship between private investment and monetary policy in ni...Alexander Decker
This study investigated the long-run relationship between private investment and monetary policy in Nigeria from 1981 to 2009. The results of the vector autoregression model showed that in the short-run, money supply had a negative but insignificant impact on private investment, while GDP and other factors had a positive impact. However, in the long-run all variables became statistically significant, with money supply positively affecting private investment growth. This implies that monetary policy in Nigeria has positively influenced the growth of private investment over the long-run. The study concluded that private investment and monetary policy have been negatively related in the short-run in terms of money supply, but positively related based on GDP and other factors in the long-run.
11.long run relationship between private investment and monetary policy in ni...Alexander Decker
This study investigated the long-run relationship between private investment and monetary policy in Nigeria from 1981 to 2009. The results of the vector autoregression model showed that in the short-run, money supply had a negative but insignificant impact on private investment, while GDP and other factors had a positive impact. However, in the long-run all variables became statistically significant, with money supply positively affecting private investment growth. This implies that monetary policy in Nigeria has positively influenced the growth of private investment over the long-run. The study concluded that private investment and monetary policy have been negatively related in the short-run in terms of money supply, but positively related based on GDP and other factors in the long-run.
Effectiveness of Aggregate Determinants of Deficit Financing on Capital Forma...YogeshIJTSRD
In Nigeria, despite the huge expansion of public expenditure based on the budget deficit status over the years, the expected level of economic growth as a result capital formation has not been achieved and it is against this backdrop, that this study investigated the effectiveness of aggregate deficit financing on capital formation in Nigeria for the period 1981 2019 with the help of the ARDL model of estimation. Based on the issues covered in the literature review, empirical investigations were carried out on the effect of deficit financing on capital formation in Nigeria. Results showed that External Debt Stock LNEXDBT had a positive relationship with GCF GDP in the current year, 1st and 2nd lags but statistically insignificant in the long run, Domestic Debt Stock LNDMDBT had a negative relationship with GCF GDP in the current year, 1st and 2ndyear lags and long run, Aggregate Gross Savings LNADBTS had a positive significant relationship with GCF GDP in the current year and in the long run, Aggregate Debt Service LNADBTS had a positive relationship with GCF GDP in the current year and in the long run while Total external reserves had a negative relationship with GCF GDP in the current year and in the long run. Based on the findings, the study recommended that the Government should demonstrate a high sense of transparency in its monetary and fiscal operations to curb high prevalence of external and domestic borrowing, improved gross savings to reduce the incidence of inflation which will translate to economic prosperity. Justin. C. Alugbuo | Emeka Eze "Effectiveness of Aggregate Determinants of Deficit Financing on Capital Formation in Nigeria: An Approach Based on the ARDL Model" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-3 , April 2021, URL: https://www.ijtsrd.com/papers/ijtsrd39820.pdf Paper URL: https://www.ijtsrd.com/economics/market-economy/39820/effectiveness-of-aggregate-determinants-of-deficit-financing-on-capital-formation-in-nigeria-an-approach-based-on-the-ardl-model/justin-c-alugbuo
Effects of fiscal policy on private investment and economic growth in kenyaAlexander Decker
Fiscal policy impacts private investment and economic growth in Kenya through several channels. A study using time series data from 1973 to 2009 found that fiscal policy affects investment, and investment plays a major role in determining economic growth. Specifically, budget deficits, government consumption, taxes, interest rates, foreign capital inflows, and public debt influence the level of private investment. The study recommends reexamining government spending to complement private investment, increasing credit to the private sector, and designing policies to address high public debt and budget deficits.
7.[68 76]investment, inflation and economic growth-empirical evidence from ni...Alexander Decker
1) The document examines the empirical relationship between investment, inflation, and economic growth in Nigeria from 1981 to 2006.
2) The results of the regression analysis show that inflation has a negative and significant relationship with economic growth, while investment has a positive and significant relationship.
3) Specifically, a 1% increase in inflation is associated with a 0.09% decrease in economic growth, while a 1% increase in investment is associated with a 0.3% increase in economic growth.
7.[68 76]investment, inflation and economic growth-empirical evidence from ni...Alexander Decker
This document summarizes a research paper that empirically examines the impact of investment and inflation on economic growth in Nigeria from 1981 to 2006. The key findings are:
1) Higher inflation is negatively associated with economic growth, while higher investment is positively associated with economic growth.
2) A 1% increase in inflation is associated with a 0.09% decrease in economic growth, while a 1% increase in investment is associated with a 0.3% increase in economic growth.
3) Both supply-side and demand management policies should be adopted to reduce inflation in the short and long-run in order to promote economic growth.
Monetary Policy and Trade Balance in NigeriaYogeshIJTSRD
Nigeria apex bank Central Bank of Nigeria CBN has continued to battle with the job of reviving the ailing economy and putting it on the path of growth. The economy has witnessed unprecedented job loss, rising poverty level, accelerating inflation, sluggish economic growth and disequilibrium in the balance of trade. The study therefore examine the effect of monetary policy on trade balance in Nigeria. Specifically the study ascertained the extent to which inflation, demand deposit, liquidity ratio, exchange rate and interest rate have influenced trade balance in Nigeria using an econometric regression model of the Ordinary Least Square OLS . From the result of the OLS, it is observed that monetary policy rate, demand deposit, liquidity ratio and exchange rate have a significant positive impact on foreign trade in Nigeria. This means that increases in monetary policy rate, demand deposit, liquidity ratio and exchange rate, will lead to increase in foreign trade in Nigeria. On the other, inflation rate and interest rate has a significant negative impact on foreign trade in Nigeria, meaning that as inflation rate and interest rate increases, will be bring about a decline in foreign trade in Nigeria. Based on the findings of this study, the study recommends that the government should employ a contractionary monetary policy to fight inflation by reducing the money supply in the country through decreased bond price. inflation, demand deposit, liquidity ratio, exchange rate and interest rate have influenced trade balance in Nigeria. The government should intervene in the foreign exchange market in order to build reserves for themselves or provide them to the bank to help stabilize the exchange rate. The government should strive to improve trade performance in the short and long run. They should also reduce government spending and tax capital inflow. Edokobi, Tonna David | Okpala, Ngozi Eugenia | Okoye, Nonso John "Monetary Policy and Trade Balance in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd45080.pdf Paper URL: https://www.ijtsrd.com/management/public-sector-management/45080/monetary-policy-and-trade-balance-in-nigeria/edokobi-tonna-david
11.exchange rate and macroeconomic aggregates in nigeriaAlexander Decker
This document summarizes a study that analyzes the impact of exchange rates on macroeconomic aggregates in Nigeria from 1970 to 2009. It uses simultaneous equation models and vector-autoregressive models to examine the relationship between real exchange rates and GDP growth. The results show no strong direct relationship between exchange rate changes and GDP growth. Rather, Nigeria's economic growth has been directly affected by fiscal and monetary policies and exports. Exchange rate overvaluation has been unfavorable for growth. The conclusion is that exchange rate management improvements are necessary but not sufficient to revive the Nigerian economy and broader economic reforms are required.
Similar to 11.0003www.iiste.org call for paper-45 (20)
Abnormalities of hormones and inflammatory cytokines in women affected with p...Alexander Decker
Women with polycystic ovary syndrome (PCOS) have elevated levels of hormones like luteinizing hormone and testosterone, as well as higher levels of insulin and insulin resistance compared to healthy women. They also have increased levels of inflammatory markers like C-reactive protein, interleukin-6, and leptin. This study found these abnormalities in the hormones and inflammatory cytokines of women with PCOS ages 23-40, indicating that hormone imbalances associated with insulin resistance and elevated inflammatory markers may worsen infertility in women with PCOS.
A usability evaluation framework for b2 c e commerce websitesAlexander Decker
This document presents a framework for evaluating the usability of B2C e-commerce websites. It involves user testing methods like usability testing and interviews to identify usability problems in areas like navigation, design, purchasing processes, and customer service. The framework specifies goals for the evaluation, determines which website aspects to evaluate, and identifies target users. It then describes collecting data through user testing and analyzing the results to identify usability problems and suggest improvements.
A universal model for managing the marketing executives in nigerian banksAlexander Decker
This document discusses a study that aimed to synthesize motivation theories into a universal model for managing marketing executives in Nigerian banks. The study was guided by Maslow and McGregor's theories. A sample of 303 marketing executives was used. The results showed that managers will be most effective at motivating marketing executives if they consider individual needs and create challenging but attainable goals. The emerged model suggests managers should provide job satisfaction by tailoring assignments to abilities and monitoring performance with feedback. This addresses confusion faced by Nigerian bank managers in determining effective motivation strategies.
A unique common fixed point theorems in generalized dAlexander Decker
This document presents definitions and properties related to generalized D*-metric spaces and establishes some common fixed point theorems for contractive type mappings in these spaces. It begins by introducing D*-metric spaces and generalized D*-metric spaces, defines concepts like convergence and Cauchy sequences. It presents lemmas showing the uniqueness of limits in these spaces and the equivalence of different definitions of convergence. The goal of the paper is then stated as obtaining a unique common fixed point theorem for generalized D*-metric spaces.
A trends of salmonella and antibiotic resistanceAlexander Decker
This document provides a review of trends in Salmonella and antibiotic resistance. It begins with an introduction to Salmonella as a facultative anaerobe that causes nontyphoidal salmonellosis. The emergence of antimicrobial-resistant Salmonella is then discussed. The document proceeds to cover the historical perspective and classification of Salmonella, definitions of antimicrobials and antibiotic resistance, and mechanisms of antibiotic resistance in Salmonella including modification or destruction of antimicrobial agents, efflux pumps, modification of antibiotic targets, and decreased membrane permeability. Specific resistance mechanisms are discussed for several classes of antimicrobials.
A transformational generative approach towards understanding al-istifhamAlexander Decker
This document discusses a transformational-generative approach to understanding Al-Istifham, which refers to interrogative sentences in Arabic. It begins with an introduction to the origin and development of Arabic grammar. The paper then explains the theoretical framework of transformational-generative grammar that is used. Basic linguistic concepts and terms related to Arabic grammar are defined. The document analyzes how interrogative sentences in Arabic can be derived and transformed via tools from transformational-generative grammar, categorizing Al-Istifham into linguistic and literary questions.
A therapy for physical and mental fitness of school childrenAlexander Decker
This document summarizes a study on the importance of exercise in maintaining physical and mental fitness for school children. It discusses how physical and mental fitness are developed through participation in regular physical exercises and cannot be achieved solely through classroom learning. The document outlines different types and components of fitness and argues that developing fitness should be a key objective of education systems. It recommends that schools ensure pupils engage in graded physical activities and exercises to support their overall development.
A theory of efficiency for managing the marketing executives in nigerian banksAlexander Decker
This document summarizes a study examining efficiency in managing marketing executives in Nigerian banks. The study was examined through the lenses of Kaizen theory (continuous improvement) and efficiency theory. A survey of 303 marketing executives from Nigerian banks found that management plays a key role in identifying and implementing efficiency improvements. The document recommends adopting a "3H grand strategy" to improve the heads, hearts, and hands of management and marketing executives by enhancing their knowledge, attitudes, and tools.
This document discusses evaluating the link budget for effective 900MHz GSM communication. It describes the basic parameters needed for a high-level link budget calculation, including transmitter power, antenna gains, path loss, and propagation models. Common propagation models for 900MHz that are described include Okumura model for urban areas and Hata model for urban, suburban, and open areas. Rain attenuation is also incorporated using the updated ITU model to improve communication during rainfall.
A synthetic review of contraceptive supplies in punjabAlexander Decker
This document discusses contraceptive use in Punjab, Pakistan. It begins by providing background on the benefits of family planning and contraceptive use for maternal and child health. It then analyzes contraceptive commodity data from Punjab, finding that use is still low despite efforts to improve access. The document concludes by emphasizing the need for strategies to bridge gaps and meet the unmet need for effective and affordable contraceptive methods and supplies in Punjab in order to improve health outcomes.
A synthesis of taylor’s and fayol’s management approaches for managing market...Alexander Decker
1) The document discusses synthesizing Taylor's scientific management approach and Fayol's process management approach to identify an effective way to manage marketing executives in Nigerian banks.
2) It reviews Taylor's emphasis on efficiency and breaking tasks into small parts, and Fayol's focus on developing general management principles.
3) The study administered a survey to 303 marketing executives in Nigerian banks to test if combining elements of Taylor and Fayol's approaches would help manage their performance through clear roles, accountability, and motivation. Statistical analysis supported combining the two approaches.
A survey paper on sequence pattern mining with incrementalAlexander Decker
This document summarizes four algorithms for sequential pattern mining: GSP, ISM, FreeSpan, and PrefixSpan. GSP is an Apriori-based algorithm that incorporates time constraints. ISM extends SPADE to incrementally update patterns after database changes. FreeSpan uses frequent items to recursively project databases and grow subsequences. PrefixSpan also uses projection but claims to not require candidate generation. It recursively projects databases based on short prefix patterns. The document concludes by stating the goal was to find an efficient scheme for extracting sequential patterns from transactional datasets.
A survey on live virtual machine migrations and its techniquesAlexander Decker
This document summarizes several techniques for live virtual machine migration in cloud computing. It discusses works that have proposed affinity-aware migration models to improve resource utilization, energy efficient migration approaches using storage migration and live VM migration, and a dynamic consolidation technique using migration control to avoid unnecessary migrations. The document also summarizes works that have designed methods to minimize migration downtime and network traffic, proposed a resource reservation framework for efficient migration of multiple VMs, and addressed real-time issues in live migration. Finally, it provides a table summarizing the techniques, tools used, and potential future work or gaps identified for each discussed work.
A survey on data mining and analysis in hadoop and mongo dbAlexander Decker
This document discusses data mining of big data using Hadoop and MongoDB. It provides an overview of Hadoop and MongoDB and their uses in big data analysis. Specifically, it proposes using Hadoop for distributed processing and MongoDB for data storage and input. The document reviews several related works that discuss big data analysis using these tools, as well as their capabilities for scalable data storage and mining. It aims to improve computational time and fault tolerance for big data analysis by mining data stored in Hadoop using MongoDB and MapReduce.
1. The document discusses several challenges for integrating media with cloud computing including media content convergence, scalability and expandability, finding appropriate applications, and reliability.
2. Media content convergence challenges include dealing with the heterogeneity of media types, services, networks, devices, and quality of service requirements as well as integrating technologies used by media providers and consumers.
3. Scalability and expandability challenges involve adapting to the increasing volume of media content and being able to support new media formats and outlets over time.
This document surveys trust architectures that leverage provenance in wireless sensor networks. It begins with background on provenance, which refers to the documented history or derivation of data. Provenance can be used to assess trust by providing metadata about how data was processed. The document then discusses challenges for using provenance to establish trust in wireless sensor networks, which have constraints on energy and computation. Finally, it provides background on trust, which is the subjective probability that a node will behave dependably. Trust architectures need to be lightweight to account for the constraints of wireless sensor networks.
This document discusses private equity investments in Kenya. It provides background on private equity and discusses trends in various regions. The objectives of the study discussed are to establish the extent of private equity adoption in Kenya, identify common forms of private equity utilized, and determine typical exit strategies. Private equity can involve venture capital, leveraged buyouts, or mezzanine financing. Exits allow recycling of capital into new opportunities. The document provides context on private equity globally and in developing markets like Africa to frame the goals of the study.
This document discusses a study that analyzes the financial health of the Indian logistics industry from 2005-2012 using Altman's Z-score model. The study finds that the average Z-score for selected logistics firms was in the healthy to very healthy range during the study period. The average Z-score increased from 2006 to 2010 when the Indian economy was hit by the global recession, indicating the overall performance of the Indian logistics industry was good. The document reviews previous literature on measuring financial performance and distress using ratios and Z-scores, and outlines the objectives and methodology used in the current study.
A study to evaluate the attitude of faculty members of public universities of...Alexander Decker
This study evaluated faculty members' attitudes toward shared governance in public universities in Pakistan. It used a questionnaire to assess attitudes on 4 indicators of shared governance: the role of the dean, role of faculty, role of the board, and role of joint decision-making. The study analyzed responses from 90 faculty across various universities. Statistical analysis found significant differences in perceptions of shared governance based on faculty rank and gender. Faculty rank influenced perceptions of the dean's role and role of joint decision-making. Gender influenced overall perceptions of shared governance. The results indicate a need to improve shared governance practices in Pakistani universities.
Full-RAG: A modern architecture for hyper-personalizationZilliz
Mike Del Balso, CEO & Co-Founder at Tecton, presents "Full RAG," a novel approach to AI recommendation systems, aiming to push beyond the limitations of traditional models through a deep integration of contextual insights and real-time data, leveraging the Retrieval-Augmented Generation architecture. This talk will outline Full RAG's potential to significantly enhance personalization, address engineering challenges such as data management and model training, and introduce data enrichment with reranking as a key solution. Attendees will gain crucial insights into the importance of hyperpersonalization in AI, the capabilities of Full RAG for advanced personalization, and strategies for managing complex data integrations for deploying cutting-edge AI solutions.
Alt. GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using ...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
Speakers:
Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
Observability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdfPaige Cruz
Monitoring and observability aren’t traditionally found in software curriculums and many of us cobble this knowledge together from whatever vendor or ecosystem we were first introduced to and whatever is a part of your current company’s observability stack.
While the dev and ops silo continues to crumble….many organizations still relegate monitoring & observability as the purview of ops, infra and SRE teams. This is a mistake - achieving a highly observable system requires collaboration up and down the stack.
I, a former op, would like to extend an invitation to all application developers to join the observability party will share these foundational concepts to build on:
Enchancing adoption of Open Source Libraries. A case study on Albumentations.AIVladimir Iglovikov, Ph.D.
Presented by Vladimir Iglovikov:
- https://www.linkedin.com/in/iglovikov/
- https://x.com/viglovikov
- https://www.instagram.com/ternaus/
This presentation delves into the journey of Albumentations.ai, a highly successful open-source library for data augmentation.
Created out of a necessity for superior performance in Kaggle competitions, Albumentations has grown to become a widely used tool among data scientists and machine learning practitioners.
This case study covers various aspects, including:
People: The contributors and community that have supported Albumentations.
Metrics: The success indicators such as downloads, daily active users, GitHub stars, and financial contributions.
Challenges: The hurdles in monetizing open-source projects and measuring user engagement.
Development Practices: Best practices for creating, maintaining, and scaling open-source libraries, including code hygiene, CI/CD, and fast iteration.
Community Building: Strategies for making adoption easy, iterating quickly, and fostering a vibrant, engaged community.
Marketing: Both online and offline marketing tactics, focusing on real, impactful interactions and collaborations.
Mental Health: Maintaining balance and not feeling pressured by user demands.
Key insights include the importance of automation, making the adoption process seamless, and leveraging offline interactions for marketing. The presentation also emphasizes the need for continuous small improvements and building a friendly, inclusive community that contributes to the project's growth.
Vladimir Iglovikov brings his extensive experience as a Kaggle Grandmaster, ex-Staff ML Engineer at Lyft, sharing valuable lessons and practical advice for anyone looking to enhance the adoption of their open-source projects.
Explore more about Albumentations and join the community at:
GitHub: https://github.com/albumentations-team/albumentations
Website: https://albumentations.ai/
LinkedIn: https://www.linkedin.com/company/100504475
Twitter: https://x.com/albumentations
Pushing the limits of ePRTC: 100ns holdover for 100 daysAdtran
At WSTS 2024, Alon Stern explored the topic of parametric holdover and explained how recent research findings can be implemented in real-world PNT networks to achieve 100 nanoseconds of accuracy for up to 100 days.
How to Get CNIC Information System with Paksim Ga.pptxdanishmna97
Pakdata Cf is a groundbreaking system designed to streamline and facilitate access to CNIC information. This innovative platform leverages advanced technology to provide users with efficient and secure access to their CNIC details.
Unlock the Future of Search with MongoDB Atlas_ Vector Search Unleashed.pdfMalak Abu Hammad
Discover how MongoDB Atlas and vector search technology can revolutionize your application's search capabilities. This comprehensive presentation covers:
* What is Vector Search?
* Importance and benefits of vector search
* Practical use cases across various industries
* Step-by-step implementation guide
* Live demos with code snippets
* Enhancing LLM capabilities with vector search
* Best practices and optimization strategies
Perfect for developers, AI enthusiasts, and tech leaders. Learn how to leverage MongoDB Atlas to deliver highly relevant, context-aware search results, transforming your data retrieval process. Stay ahead in tech innovation and maximize the potential of your applications.
#MongoDB #VectorSearch #AI #SemanticSearch #TechInnovation #DataScience #LLM #MachineLearning #SearchTechnology
Climate Impact of Software Testing at Nordic Testing DaysKari Kakkonen
My slides at Nordic Testing Days 6.6.2024
Climate impact / sustainability of software testing discussed on the talk. ICT and testing must carry their part of global responsibility to help with the climat warming. We can minimize the carbon footprint but we can also have a carbon handprint, a positive impact on the climate. Quality characteristics can be added with sustainability, and then measured continuously. Test environments can be used less, and in smaller scale and on demand. Test techniques can be used in optimizing or minimizing number of tests. Test automation can be used to speed up testing.
Cosa hanno in comune un mattoncino Lego e la backdoor XZ?Speck&Tech
ABSTRACT: A prima vista, un mattoncino Lego e la backdoor XZ potrebbero avere in comune il fatto di essere entrambi blocchi di costruzione, o dipendenze di progetti creativi e software. La realtà è che un mattoncino Lego e il caso della backdoor XZ hanno molto di più di tutto ciò in comune.
Partecipate alla presentazione per immergervi in una storia di interoperabilità, standard e formati aperti, per poi discutere del ruolo importante che i contributori hanno in una comunità open source sostenibile.
BIO: Sostenitrice del software libero e dei formati standard e aperti. È stata un membro attivo dei progetti Fedora e openSUSE e ha co-fondato l'Associazione LibreItalia dove è stata coinvolta in diversi eventi, migrazioni e formazione relativi a LibreOffice. In precedenza ha lavorato a migrazioni e corsi di formazione su LibreOffice per diverse amministrazioni pubbliche e privati. Da gennaio 2020 lavora in SUSE come Software Release Engineer per Uyuni e SUSE Manager e quando non segue la sua passione per i computer e per Geeko coltiva la sua curiosità per l'astronomia (da cui deriva il suo nickname deneb_alpha).
Communications Mining Series - Zero to Hero - Session 1DianaGray10
This session provides introduction to UiPath Communication Mining, importance and platform overview. You will acquire a good understand of the phases in Communication Mining as we go over the platform with you. Topics covered:
• Communication Mining Overview
• Why is it important?
• How can it help today’s business and the benefits
• Phases in Communication Mining
• Demo on Platform overview
• Q/A
Generative AI Deep Dive: Advancing from Proof of Concept to ProductionAggregage
Join Maher Hanafi, VP of Engineering at Betterworks, in this new session where he'll share a practical framework to transform Gen AI prototypes into impactful products! He'll delve into the complexities of data collection and management, model selection and optimization, and ensuring security, scalability, and responsible use.
UiPath Test Automation using UiPath Test Suite series, part 6DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 6. In this session, we will cover Test Automation with generative AI and Open AI.
UiPath Test Automation with generative AI and Open AI webinar offers an in-depth exploration of leveraging cutting-edge technologies for test automation within the UiPath platform. Attendees will delve into the integration of generative AI, a test automation solution, with Open AI advanced natural language processing capabilities.
Throughout the session, participants will discover how this synergy empowers testers to automate repetitive tasks, enhance testing accuracy, and expedite the software testing life cycle. Topics covered include the seamless integration process, practical use cases, and the benefits of harnessing AI-driven automation for UiPath testing initiatives. By attending this webinar, testers, and automation professionals can gain valuable insights into harnessing the power of AI to optimize their test automation workflows within the UiPath ecosystem, ultimately driving efficiency and quality in software development processes.
What will you get from this session?
1. Insights into integrating generative AI.
2. Understanding how this integration enhances test automation within the UiPath platform
3. Practical demonstrations
4. Exploration of real-world use cases illustrating the benefits of AI-driven test automation for UiPath
Topics covered:
What is generative AI
Test Automation with generative AI and Open AI.
UiPath integration with generative AI
Speaker:
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
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11.0003www.iiste.org call for paper-45
1. Journal of Economics and Sustainable Development www.iiste.org
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)
Vol.2, No.6, 2011
The Nexus of Private Savings and Economic Growth in
Emerging Economy: A Case of Nigeria
Adelakun, Ojo Johnson
Department of Economics, Joseph Ayo Babalola University
P.M.B. 5006, Ilesa, Osun State, Nigeria, email joadelakun@yahoo.co.uk
Received: October 11st, 2011
Accepted: October 19th, 2011
Published: October 30th, 2011
Abstract
This study discusses the trend in Nigerian saving behaviour and reviews policy options to increase
domestic saving. It also examines the determinants of private saving in Nigeria during the period covering
1970 – 2007. It makes an important contribution to the literature by evaluating the magnitude and direction
of the effects of the following key policy and non-policy variables on private saving: Income growth,
interest rate, fiscal policy, and financial development. The framework for analysis involves the estimation
of a saving rate function derived from the Life Cycle Hypothesis while taking into cognizance the structural
characteristics of a developing economy. The study employs the Error-Correction modelling procedure
which minimizes the possibility of estimating spurious relations, while at the same time retaining long-run
information. The results of the analysis show that the saving rate rises with both the growth rate of
disposable income and the real interest rate on bank deposits. Public saving seems not to crowd out private
saving; suggesting that government policies aimed at improving the fiscal balance has the potential of
bringing about a substantial increase in the national saving rate. Finally, the degree of financial depth has a
negative but insignificant impact on saving behaviour in Nigeria.
Keywords: Private Saving, Saving Rate, Macroeconomic Policy, Interest Rate, Economic Growth.
Introduction
Researchers and policy makers are known to be having growing concern among researchers and policy
makers over the declining trend in saving rates and its substantial divergence among countries. This is due
to the critical importance of saving for the maintenance of strong and sustainable growth in the world
economy. Over the past three decades, saving rates have doubled in East Asia and stagnated in Sub-Saharan
Africa, Latin America and the Caribbean (Loayza, Schmidt-Hebbel and Serven, 2000). The personal saving
rate has been drifting downward for the last two decades. According to the latest statistics, personal saving
declined from about 10% of disposable income in the early 1980s to 1.8% in 2004. The decline has
received particular attention recently because saving was negative in 2005 for the first time since the Great
Depression. Although saving declined in other developed countries during this period, the U.S decline was
more pronounced than in most of the three countries.
Development economists have been concerned for decades about the crucial role of domestic
saving mobilization in the sustenance and reinforcement of the saving-investment-growth chain in
developing economies. For instance, Aghevli et al (1990) found that the saving rate and investment in
human capital are indeed closely linked to economic growth. The relationship among saving, investment
and growth has historically been very close; hence, the unsatisfactory growth performance of several
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Vol.2, No.6, 2011
developing countries has been attributed to poor saving and investment.
This poor growth performance has generally led to a dramatic decline in investment. Domestic
saving rates have not fared better, thus worsening the already precarious balance of payments position
(Chete, 1999). In the same vein, attempts to correct external imbalances by reducing aggregate demand
have led to a further decline in investment expenditure, thus aggravating the problem of sluggish growth
and declining saving and investment rates (Khan and Villanueva, 1991). In addition, low personal saving
has created short-run concerns that a sudden increase in the saving rate could reduce growth of consumer
spending, and output and employment.
Statement of the Problem
The strong positive correlation which exists between saving, investment and growth is well
established in the literature. The dismal growth record in most African countries, relative to other regions of
the world has been of concern to economists. This is because the growth rate registered in most African
countries is often not commensurate with the level of investment. In Nigeria for instance, the economy
witnessed tremendous growth in the 1970s and early 1980s as a result of the oil boom and this led to the
investment boom especially in the public sector. However, with the collapse of the oil market in the 1980s,
investment fell, thereby resulting in a fall in economic growth. For instance, during the investment boom,
gross investment as a percentage of Gross Domestic Product (GDP) was 16.8 and 31.4 percent in 1974 and
1976 respectively, whereas it declined to 9.5 and 8.9 percent, respectively in 1984 and 1985(CBN 2008).
One question begging for an answer is: What is the impact of saving and investment on growth? It
has been argued that saving affects investment, which in turn influences growth in output. The transformation
of initial growth into sustained output expansion requires the accumulation of capital and its corresponding
financing. An output expansion in turn sets in motion a self reinforcing process by which the anticipated
growth encourages investment, which supports growth, as well as financial development. It is certain that
without a significant increase in the level of investment (public and private), no meaningful growth in output
would be achieved. Indeed if private investment remains at the current low level, it will slow down potential
growth and reduce long run level of per capita consumption and income, thereby leading to low savings and
investment.
Objective of the Study
• This study has the following objectives:
• To know the impact of private saving in economic growth in Nigeria.
• To also carry out an analysis of the sources and trend of saving in Nigeria.
• To also know the motivations of saving and how savings are measured.
• To also know how saving affects the economic performance in the country.
• To also evaluate the impact of the main determinants of saving identified in the literature on private
saving in Nigeria.
Method of the Study (Methodology)
The framework for this analysis is derived from the life-cycle model which has withstood the test of
time in explaining the changes in private saving over time. It is appropriately modified to accommodate the
peculiarities of a developing country and builds on the existing cross-country literature on saving which
quantifies the effects of a variety of policy and non-policy variables on private saving. Its attractiveness lies
in its elegant formulation of the effects of interest rate and growth on saving. In addition, its flexibility makes
it possible for other relevant theoretical considerations to be incorporated, thus forming an integrated
analytical framework, without altering its fundamental structure. This framework makes a new contribution
to the literature by employing time series data in evaluating the determinants of private saving in Nigeria
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Vol.2, No.6, 2011
between 1970 and 2009. It does this while explicitly addressing some of the econometric problems arising
from the use of time-series data.
Literature Review, Theoretical Framework and Empirical Evidence
Introduction
Keynes (1936) defined savings as the excess of income over expenditure on consumption.
Meaning that savings is that part of the disposable income of the period which has not passed into
consumption (Umoh, 2003 and Uremadu, 2005). Given that income is equal to the value of current output;
and that current investment (i.e. Gross capital formation) is equal to the value of that part of current output,
which is not consumed; savings is equal to the excess of income over consumption. Hence, the equality of
savings and investment necessarily follow thus:
Income = Value of output = Consumption + Investment
Savings = Income – Consumption
Savings = Investment ex-post.
There abound numerous theoretical evidences concerning the functional relationships between
savings and a wide range of causal variables. For instance, Juster and Taylor (1975) report that savings is an
increasing function of income. Moreover, Modigliani (1970), Madison (1992), Bosworth (1993), Caroll and
Weil (1993), Schmidt-Hebbel, Sarven and Solimano (1994), Modigliani (1992), Jappeli and Pugano (1994),
Edwards (1995), Collins (1991) and Uremadu (2000) maintain that there exists a positive relationship
between savings and income growth rates. Aghevli (1990) in Ozigbo (1999) reported that there is consensus
that the level of savings is largely determined by the level of income.
In Nigeria and other developing economies, there are other evidences that interest rate has significant
effect on financial savings especially time and savings deposits while the structure of deposits was
determined by differentials in deposit rates as has been demonstrated in Ndekwu, (1991). He also showed
using monthly data that interest rates deregulation in Nigeria have a positive impact on financial savings
during the period, 1984-1988.
Literature Survey
Franco Modigliani in his Life Cycle model determined that over the typical individual’s lifetime
his level of income will fluctuate from low levels in his younger years, to high levels in his middle-aged
working years, back to low levels in his retirement years. However, this individual prefers to maintain a
relatively stable level of consumption. In order to maintain this steady consumption, the individual will be
forced to borrow during his younger years, save during his middle-aged years and then spend down his
savings in his retirement years. From estimating his model, Modigliani concludes that individuals have a
marginal propensity to consume (MPC) out of income of approximately 0.70 and an MPC out of net worth
if approximately 0.07 to 0.08. (Ando and Modigliani, 1962)
Many researchers have studied the possible determinants of private savings behavior. In
Amaoteng’s survey article, he shows that saving has been found to be positively correlated with income,
wealth, education, age, a high level of risk tolerance, and a favorable perception of one’s own financial
status; and negatively correlated with a larger family size. (Amaoteng 2002) Modigliani’s life cycle model
illustrates that age structure can have a strong impact on the level of savings in an economy. Since
individuals in the middle-aged working years (which we will define as ages 25-55) tend to save more than
individuals in the younger (ages 0-24) or retirement years (ages 56+), a population with a higher
concentration of individuals in the middle-aged range will have higher savings rates. (Amaoteng 2002)
Trend of Saving in Nigeria
In mobilizing funds from the surplus units of the economy, banks incur some costs mainly in interest
payments on deposit accounts. In order to recover the cost of deposit mobilization and other operating
overheads, banks lend at higher interest rates. The difference between the two types of rates is referred to as
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ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)
Vol.2, No.6, 2011
the interest rate spread or the intermediation spread. The spread measures the efficiency of the intermediation
process in the market, such that, a high intermediation spread implies that there is inefficiency in the market,
especially as it discourages potential savers and borrowers, thus, hampering investment and growth.
Prior to the deregulation of the banking sector, interest rates were administratively determined by
the Central Bank. Both the deposit and lending rates were fixed by the CBN on the basis of policy decisions.
At that time, the major goals were socially optimum resource allocation, promotion of orderly growth of the
financial market, as well as reduction of both inflation and the internal debt service burden on the
government. During the period 1970 to 1985, the rates were unable to keep pace with prevailing inflation
rate, resulting in negative real interest rates. Moreover, the performance of the preferred sectors of the
economy was below expectation, thus, leading to the deregulation of the interest rate in August 1987 to a
market-based system. This enabled banks to determine their deposit and lending rates according to the market
conditions through negotiations with their customers.
However, the minimum rediscount rate (MRR) which is the central bank’s nominal anchor
continued to be determined by the CBN. The lack of responsiveness of the structure of deposit and lending
rates to market fundamentals makes the interest rate inefficient. The wide divergence between the deposit and
lending rates (interest rate spread) is inimical to economic growth and development of the Nigerian economy.
Between 1980 and 1984, interest rate differentials averaged 3.9 per cent. Even though this was reasonable
within the accepted limit, the spread widened between 1985 and 1989, averaging 4.3 per cent per annum. This
impacted negatively on the amount of loanable funds available to the private sector for investment.
The interest differential further widened to an average of 7.9 per cent between 1990 and 1994.
Thereafter, the yearly interest rate spread maintained an upward trend, rising from 8.2 per cent in 1995 to 24.6
per cent in 2002, before declining to 15.7 per cent in 2005 (see Figure 1). The widening gap between the
deposit and lending rates reflects the prevailing inefficiencies in the Nigerian banking sector and has deterred
potential investors from borrowing, and thus lowered the level of investment in the economy.
Interest Rate Spread (in Percentage)
Source: Central Bank of Nigeria i) Statistical Bulletin, 2006 and
ii) Annual Report and Statement of Accounts, various years.
The use of interest rate spread has however been criticized given that higher levels of interest rates
are usually associated with higher inflation rates, and therefore a higher cost of holding money. In addition,
higher inflation rates tend to be associated with higher country premia. As a result of these disadvantages of
interest rate spread as an indicator of efficiency, net interest margin has been proposed as a better alternative.
Net interest margin is equal to total interest revenues minus total interest expenditure divided by the value of
assets. Higher values of net interest margin indicate a higher spread on deposit and lending rates and therefore
lower efficiency.
Figure 2 shows the interest rate figures in Nigeria between 1970 and 2009. A cursory look reveals
that the nominal interest rate was institutionally determined by the monetary authorities throughout the 1970s
and the first half of the 1980s. However, with the advent of the structural adjustment programme in the mid
1980s which brought with it a rash of financial sector reforms, Nigeria abandoned its fixed interest rate
regime that saw nominal interest rates rising from 9.3 percent in 1985 to 26.8 percent in 1989, and reaching a
peak of 29.8 percent in 1992. The figure has since hovered between 13.5 percent and 24.4 percent. It stood at
16.5 percent in 2009.
Real Interest Rate (in Percentage)
Source: Central Bank of Nigeria i) Statistical Bulletin, 2006 and
ii) Annual Report and Statement of Accounts, various years.
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ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)
Vol.2, No.6, 2011
The real interest rate figures present an interesting picture. Between 1970 and 2009, the figure was
negative 20 times, attaining positive figures on 18 occasions. The fixed interest rate regime of the 1970s and
early 1980s no doubt contributed to this negative trend by fixing the interest rate at artificially low levels. For
instance, in the first two decades (1970 to 1989) when the fixed regime dominated, real interest rate was
negative 14 times and positive only 6 times. However, in the last two decades (1990 to 2009), when market
forces took over, the real interest rate was negative on only 6 occasions. The inflation rate also played a very
important role in making the real interest rate negative for most of the period. A cursory glance at figure 2
shows that the years when the real
interest rate was negative usually
coincided with those of double-digit
inflation rates.
Table 1 shows the components
of saving in Nigeria including savings
and time deposits with deposit money
banks, the national provident fund,
federal savings bank, federal mortgage
bank, life insurance funds and other
deposit institutions. Saving and time
deposits in banks is by far the single most
important component of saving in
Nigeria and has witnessed a continuous
growth over the years. Beginning with a
sum of N337 million in 1970, it rose to
N5.2 billion in 1980. By 1990, the figure
had climbed to N23.1 billion, rising
further by 2000 to N343.2 billion. As at
2005, the figure stood at N1.3 trillion.
Its contribution to total saving
has however been mixed. In 1970,
savings in banks consisted of 98.8 percent
of total saving, with this figure reducing
gradually to 89.5 percent in 1980, and
further declining to 78 percent in 1990.
From then the percentage of savings in
banks in total saving has witnessed an
upward trend, rising to 89.1 percent in
2000. Since 2003, this percentage has
been 100 percent showing that it has
become the only component of saving.
The National Provident Fund
and the Federal Mortgage bank were both
established in 1974. Beginning with
N130 million, the National Provident
Fund rose to N724 million in 1990,
reaching a peak of N1.37 billion in 1998.
The fund maintained this figure till 2002
when it was scrapped by the government.
The Federal Mortgage Bank on the other
hand experienced a more rapid growth,
rising from a paltry N7.3 million at its inception in 1974 to N305 million in 1990. By 2002 when it ceased to
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Vol.2, No.6, 2011
exist, it had mobilized N22.3 billion. The figures for the Federal Savings Bank have been mixed. It stood at
N4.9 million in 1970, increasing to N8.1 million in 1978. It thereafter declined to N4.0 billion in 1982, after
which the figure climbed steadily till it reached N37.5 billion in 1989 when it was discontinued. Life
insurance funds were established in the same year 1989 with the sum of N1.1 billion. The figure rose sharply
to N19.4 billion in 1994 thereafter witnessing a rapid decline. The amount mobilized stood at N8.5 billion in
2002 when the federal government scrapped it.
Savings, Growth and Fiscal Deficit (in percent)
Notes:
i) Savings is the ratio of private saving to Gross National Disposable Income (GDNI);
ii) Growth is the growth rate of real per capita GNDI;
iii) Fiscal Balance is the surplus or deficit of the entire federation as a percentage of GDP.
Source: Central Bank of Nigeria
i) Statistical Bulletin, 2006 and
ii) Annual Report and Statement of Accounts, various years.
Figure 3 shows the other macroeconomic variables of interest, including private saving rate, growth
and fiscal balance. The Nigerian economy has witnessed several fluctuations in its chequered history, with
economic growth fluctuating between 45 percent and -31 percent in the period between 1970 and 2009. In the
27 year period between 1974 and 2001, the economy experienced negative growth 14 times, while making a
positive showing only 13 times. However, growth has been positive since 2002. Fiscal balance was even
more troubling given that Nigeria experienced a budget surplus only six times out of the 38 year period
between 1970 and 2009. The State governments have been as culpable as the government at the centre, with
each level seemingly competing to outspend the other.
Private saving witnessed much less volatility, with the variable recording a negative value only once
in the 38 year period. The saving rate fluctuated between 20 percent and 41 percent between 1970 and 1979.
This figures changed to 14 percent and 36 percent in the next decade. Between 1990 and 1999, the saving rate
hovered between -0.6 percent and 39 percent, reaching an impressive range of between 20 percent and 65
percent in the period 2000 to 2009. The private saving rate stood at 58 percent in 2009.
Theoretical Framework
The life-cycle hypothesis was formulated by Modigliani (1970) and is the principal theoretical
underpinning that has guided the study of savings behaviour over the years. A critical analysis of this theory
however shows that it seems to mirror what happens in developed economies with little or no regard to the
peculiarities of developing countries like Nigeria. There are a number of reasons that make it imperative for
saving behaviour in developing countries to be modelled separately from that in developed economies. First,
at the microeconomic level, developing-country households tend to be large and poor. They have a different
demographic structure, more of them are likely to be engaged in agriculture, and their income prospects are
much more uncertain. The problem of allocating income over time thus looks rather different in the two
contexts, and the same basic models have different implications for behaviour and policy.
Second, at the macroeconomic level, both developing and developed countries are concerned with
saving and growth, with the possible distortion of aggregate saving, and with saving as a measure of
economic performance. However, few developing countries possess the sort of fiscal system that permits
deliberate manipulation of personal disposable income to help stabilize output and employment. Third, much
of the literature in the last five decades expresses the belief that saving is too low, and that development and
growth are impeded by the shortfall. Sometimes the problem is blamed on the lack of government policy,
other times on misguided policy. Lastly, saving is even more difficult to measure in developing than in
advanced economies, whether at the household level or as a macroeconomic aggregate. The resulting data
inadequacies are pervasive and have seriously hampered progress in answering basic questions.
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Given the above, and following Deaton (1989), this paper appropriately modifies the life-cycle
theory by developing a model of households which cannot borrow but which accumulate assets as a buffer
stock to protect consumption when incomes are low. Such households dissave as often as they save, do not
accumulate assets over the long term, and have on average very small asset holdings. However, their
consumption is markedly smoother than their income.
Following McKinnon (1973) and Shaw (1973), we argue that for the typical developing country, the
net impact of a change in real interest rate on saving is likely to be positive. This is because, in the typical
developing economy where there is no robust market for stocks and bonds, cash balances and quasi-monetary
assets usually account for a greater proportion of household saving compared to that in developed countries.
In addition, in an environment where self-financing and bank loans constitute the major source of investment
funds, accumulation of financial saving is driven mainly by the decision to invest and not by the desire to live
on interest income. Given the peculiarities of saving behaviour, in addition to the fact that the bulk of saving
comes from small savers, the substitution effect is usually larger than the income effect of an interest rate
change.
Empirical Evidence
There is an abundance of empirical studies that deal with the impact of the different variables of
interest on savings mobilization. Some authors have found a strong positive relationship between real per
capita growth and saving rates (see for example, Modigliani, 1970; Bosworth, 1993; and Carrol and Weil,
1994). However, its structural interpretation is controversial, since it is viewed both as evidence that growth
drives saving (Modigliani, 1970; and Carrol and Weil, 1994) and that saving drives growth through the
saving-investment link (Levine and Renelt, 1992; and Mankiw, Romer and Weil, 1992).
Given the importance of controlling for the joint endogeneity of saving and income growth, a panel
instrumental-variable approach to estimate the effect of income growth on saving was carried out by Loayza,
Schmidt-Hebbel, and Serven (2000). They found that a one percentage point rise in growth rate increases the
private saving rate by a similar amount, although this effect may be partly transitory. In their study, they
utilized the world saving database, whose broad coverage makes it the largest and most systematic collection
of annual time series on country saving rates and saving-related variables, spanning 35 years (1960 – 1994)
and 134 countries (112 developing and 12 industrial). Obadan and Odusola (2001) employed both graphical
analysis as well as Granger Causality tests to determine the impact of growth on saving. Their results
revealed that growth of income does not Granger-cause saving, suggesting that saving is not income-induced
in Nigeria. Evidence on the reverse causation argument also shows that saving does not Granger-cause
growth. The findings therefore do not show any direct relationship between saving and income growth.
Analytically, the effect of financial liberalization on private saving rates works through the
expansion of the supply of credit to previously credit-constrained private agents. This allows households and
small firms to use collateral more widely, and reduces down payments on loans for consumer durables and
housing. Quantitative evidence strongly supports the theoretical prediction that the expansion of credit should
reduce private saving as individuals are able to finance higher consumption at their current income level.
Loayza, Schmidt-Hebbel, and Serven (2000), find that a 1 percentage point increase in the ratio of private
credit flows to income reduces the long-term private saving rate by 0.75 percentage point. Bandiera and
others (2000), on carrying out a deeper analysis of eight episodes of financial liberalization, failed to find a
systematic direct effect on saving rate: it was positive in some cases (Ghana and Turkey), clearly negative in
others (Mexico and Korea), and negligible in the rest.
These studies however, have a number of shortcomings. To begin with, each of them focuses on
only one of the determinants of saving. They therefore do not identify the determinants of saving and analyze
their impact on the saving rate. In addition, the conclusion of Essien and Onwioduokit (1998) should be taken
with a measure of caution. This is because the time span of their study is relatively short (1987-1993). It is
therefore difficult to separate the effect of financial development from the effect of recovery and increased
capital inflow to the economy, all of which were taking place concurrently. Our study will try to overcome
this problem of simultaneity by using a longer time frame dating from 1970-2009.
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Research Methodology
The methodology used in this study is the Cointegration and Error-Correction Methodology (ECM).
The ECM is made up of models in both levels and differences of variables and is compatible with long-run
equilibrium behaviour.
Model Specification
Drawing from the analysis above on the life cycle framework, the following model was specified:
PSR= β0 + β1GRCY +β2RIR + β3FB + β4DFD + ε
Where: β1 β2 and β4 ˃0, while β3 ˂ 0 and
PSR = private saving rate
GRCY = growth rate of real per capita GNDI
RIR = real interest rate
FB = fiscal balance
DFD = degree of financial depth
The saving equation was estimated using annual data for the period 1970-2009. The estimation
period was determined largely by the availability of adequate data on all variables.
Descriptive Statistics.
The characteristics of the distribution of the variables are presented in Table 1 below. Jarque-Bera is a
test statistic for testing whether the series is normally distributed. The test statistic measures the difference of
the skewness and the kurtosis of the series with those from the normal distribution. Evidently, the
Jarque-Bera statistic rejects the null hypothesis of normal distribution for the real interest rate. On the
contrary, the null hypothesis of normal distribution is accepted for degree of financial depth, fiscal balance,
income growth and private saving.
In Nigeria, as in most developing countries, due to the absence of detailed statistical coverage of
sectoral financial activity, most of the data on saving are obtained from the national accounts statistics as
the difference between measurable aggregates. This residual or indirect approach to the calculation of
saving has some drawbacks. First, the saving of one group of economic units used by another for
consumption is not captured. Second, capital gains and losses induced by price changes are not treated
adequately. Third, consumer durables and certain elements of government expenditure are also not
adequately treated (see Shafer, Elmeskov, and Tease, 1992). For these reasons, the results obtained should
be interpreted with caution.
Table 2. Summary of the Descriptive Statistics of the Variables
DFD FB GRCY PSR RIR
Mean 24.24 -3.46 2.02 28.69 -5.31
Median 24.00 -3.50 3.00 26.00 -0.60
Maximum 35.00 9.80 45.00 65.00 18.00
Minimum 12.00 -11.10 -31.00 -0.60 -52.60
Std. Dev. 6.39 4.29 17.84 12.79 16.01
Skewness -0.07 0.52 0.48 0.56 -1.05
Kurtosis 2.009 4.01 3.33 4.05 3.74
Jarque-Bera 1.54 3.24 1.61 3.65 7.61
Probability 0.46 0.20 0.45 0.16 0.02
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Sum 897.00 -127.99 74.70 1061.40 -196.40
Sum Sq. Dev. 1472.81 661.12 11459.88 5886.52 9229.21
Observations 37 37 37 37 37
Source: National accounts statistics
Results of Stationarity Tests
Testing for the existence of unit roots is a principal concern in the study of time series models and
cointegration. The presence of a unit root implies that the time series under investigation is non-stationary;
while the absence of a unit roots shows that the stochastic process is stationary (see Iyoha and Ekanem,
2002). The time series behaviour of each of the series using the Augmented Dickey-Fuller and
Phillips-Perron tests are presented in Tables 3 and 4, respectively. The results show that while the private
saving rate (PSR), growth rate of real per capita GNDI (GRCY) and fiscal balance (FB) are I(0) variables
(stationary before differencing), real interest rate (RIR) and the degree of financial depth (DFD) are I(1)
variables (stationary after first differencing). This is deduced from the fact that the absolute values of both the
ADF and PP test statistics of RIR, GRCY and FB before differencing are greater than the absolute value of
the critical values at the 1 percent significance level. For the other variables, this is the case only after
differencing once.
Table 3. Results of Augmented Dickey Fuller (ADF) Unit Root Test
Variable ADF Value ADF Value Critical Value Level of
before After Integration
Differencing Differencing
PSR -3.657* n.a 3.621 I(0)
GRCY -5.068* n.a 3.627 I(0)
RIR -3.204 -6.275* 3.621 I(1)
FB -4.450* n.a 3.621 I(0)
DFD -1.979 -5.784* 3.621 I(1)
Notes: * denotes significant at 1 percent; the null hypothesis is that there is a unit root. n.a = not applicable
Table 4. Results of Phillips-Perron (PP) Unit Root Test
Variable PP Value PP Value After Critical Value Level of
Before Differencing Integration
Differencing
PSR -3.683* n.a 3.621 I(0)
GRCY -5.019* n.a 3.627 I(0)
RIR -3.045 -13.017* 3.621 I(1)
FB -4.405* n.a 3.621 I(0)
DFD -2.047 -5.784* 3.621 I(1)
Notes: * denotes significant at 1 percent; the null hypothesis is that there is a unit root. n.a = not applicable
Cointegrated Models
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In this study, the method established by Johansen (see Johansen, 1991) was employed in carrying
out the cointegration test. This is a powerful cointegration test, particularly when a multivariate model is
used. Moreover, it is robust to various departures from normality in that it allows any of the five variables in
the model to be used as the dependent variable while maintaining the same cointegration results.
Accordingly, Johansen’s test was carried out to check if the saving equation is cointegrated. Table 5
shows that both the Trace and Maximum Eigen statistics rejected the null of no cointegration at the 5 percent
level; while Trace test indicated that there are two cointegrating equations at the 5 percent level; Maximum
Eigen test indicated only one cointegrating equation at the 5 percent level. The implication is that a linear
combination of all the five series was found to be stationary and thus, are said to be cointegrated. In other
words, there is a stable long-run relationship between them and so we can avoid both the spurious and
inconsistent regression problems which otherwise would occur with regression of non-stationary data series.
Table 5 Johansen’s Cointegration Test Results
Maximum Eigenvalue Test Trace Test
Null Alternative Eigen-value Critical Alternative LR Ratio Critical
Hypothesis Hypothesis Value Hypothesis Value
95% 99% 95% 99%
r=0 r=1 39.79* 37.52 r≥1 108.69** 87.31 96.58
42.36
r≤1 r=2 31.30 31.46 36.65 r≥2 68.90* 62.99 70.05
r≤2 r=3 18.02 25.54 30.34 r≥3 37.60 42.44 48.45
r≤3 r=4 16.09 18.96 23.65 r≥4 19.58 19.58 30.45
r≤4 r=5 3.49 12.25 16.26 r≥5 3.49 12.25 16.26
Notes: * denotes significant at the 5% level
** denotes significant at the 1% level
Long run Model
We now present the results for the long run relationship.
PSR = +0.4013 +0.5016GRCY +0.0028RIR -0.0190FB -0.1226DFD
(3.346)** (2.233)* (3.769)** (0.459)
As postulated by our modified version of the lifecycle hypothesis, the income growth variable
(GRCY) is an important determinant of the private saving rate. The coefficient of GRCY is both positively
signed and statistically significant at the 1 percent level. An increase in the growth rate by one percent leads
to a long-run increase in the saving rate by 0.5 percent. These results are consistent with those obtained by
Modigliani (1970), Maddison (1992), Bosworth (1993) and Carroll and Weil (1994). Thus, as the incomes of
private agents grow faster, their saving rate increases. This is consistent with the existence of consumption
habits and our modified version of the Lifecycle model. The implication is that any policy that encourages
income growth in the long run will have a strong impact on private saving rate. Given the historical close link
between saving and investment rate, a rise in growth rate will lead to a virtuous cycle of higher income and
saving rates.
The result for the real interest rate variable suggests that the real rate of return on bank deposits has
a statistically significant positive effect on saving behaviour in Nigeria. A one percent increase in RIR is
associated with a 0.003 percentage point increase in the private saving rate. This finding is consistent with the
McKinnon-Shaw proposition which states that, in an economy where the saving behaviour is highly intensive
in money and near-money assets, the direct incentive effect of high real interest rates on saving behaviour
(i.e. the income effect) generally overwhelms the substitution of other assets for financial assets in response
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Vol.2, No.6, 2011
when faced with such interest rate changes (i.e. the substitution effect). The implication is that government
should find an effective mechanism for increasing the abysmally low interest rate on bank deposits if the
present crusade to increase the private saving rate is to achieve any measure of success.
The result for fiscal balance points to a significant substitutability between public and private saving
in the Nigerian context. However, there is no support for full Ricardian equivalence, which predicts full
counterbalancing of public saving by private dis-saving. Specifically, an improvement in the fiscal balance
by one percent is associated with 0.019 percentage point reduction in the private saving rate. The rather weak
private saving offset to changes in the fiscal balance behaviour may be explained by substantial uncertainty in
the economy, widespread liquidity (or wealth) constraints, tax-induced distortions and limits in households’
attempts to smooth consumption over time. Thus in the Nigerian context, policies geared to improvement in
fiscal balance has the potential of bringing about a substantial net increase in total domestic saving. This
finding is consistent with cross-country results of Corbo and Schmidt-Hebbel (1991) and those of Athukorala
and Sen (2004) for India.
The degree of financial depth failed to attain statistical significance in the saving function. Thus,
there is no empirical support for the view that the development of the financial sector has contributed to the
growth in private saving. The implication is that financial deepening may not bring about an automatic
improvement in the saving rate. For this, one requires a deeper analytical understanding of the various factors
at work here.
Empirical Results
Dynamic Error-Correction Model
Having identified the cointegrating vector using Johansen, we proceed to investigate the dynamics
of the saving process. Table 6 reports the final parsimonious estimated equation together with a set of
commonly used diagnostic statistics. The estimated saving function performs well by the relevant diagnostic
tests. In terms of the Chow test for parameter stability conducted by splitting the total sample period into
1970-1986 and 1987-2009 there is no evidence of parameter instability.
The results show that the coefficient of the error-correction term for the estimated saving equation is both
statistically significant and negative. Thus, it will rightly act to correct any deviations from long-run
equilibrium. Specifically, if actual equilibrium value is too high, the error correction term will reduce it,
while if it is too low, the error correction term will raise it. The coefficient of -0.4415 denotes that 44
percent of any past deviation will be corrected in the current period. Thus, it will take more than two years
for any disequilibrium to be corrected.
The Keynesian absolute income hypothesis is found to hold for saving behavior in Nigeria. The
coefficient for real per capita GNDI (GRCY) is positive and statistically significant at the 1 percent level.
Thus the Nigerian experience provides support for the argument that, for countries in the initial stages of
development, the level of income is an important determinant of the capacity to save. In this respect, our
results are consistent with the cross-country results of Modigliani (1993), Hussein and Thirlwall (1999),
Loayza et al (2000) and the results for India of Athukorala and Sen (2004). This implies that the high
unemployment rate which results in low disposable income is a strong impediment in raising the saving rate
in Nigeria.
Contrary to the postulation of the Life-Cycle Model, the income growth variable (GRCY) was
found to have a significant negative impact on the private saving rate. This result is interesting given that it
does not conform to those obtained from earlier studies (see Modigliani, 1970; Madison, 1992; Bosworth,
1993 and Carroll and Weil, 1994). Our Nigerian experience seems to provide support for the simple
permanent income theory which predicts that higher growth (i.e. higher future income) could reduce current
saving. In other words, at sufficiently high rates of economic growth, the aggregate saving rate may
decrease if the lifetime wealth of the young is high enough relative to that of their elders (see Athukorala
and Sen, 2004). There are two plausible explanations for this finding. The first is the penchant of Nigerians
to indulge in conspicuous consumption. As a result, growth in per capita income could actually lead to a
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Vol.2, No.6, 2011
decrease in saving. The second is that income growth was actually negative in roughly half of the period
under observation.
Table 6. Estimated Short Run Regression Results for the Private Saving Model Dependent Variable:
DPSR
Included observations: 35 after adjusting endpoints.
Variable Coefficient T-Statistic Probability
C 0.1137 2.9728 0.0063
DPSR(-1) 0.0303 0.1952 0.8467
DGRCY 0.3047 3.5435 0.0015
DRIR(-1) -0.0016 -1.6013 0.1214
DFB -0.0054 -1.2194 0.2337
DDFD 0.8020 1.6733 0.1063
ECM(-1) -0.4415 -3.3118 0.0027
Adjusted R-squared 0.3356 S.D Dependent Var. 0.1064
S.E of regression 0.0867 F-Statistic 3.6936
Durbin-Watson stat 2.2200 Prob. (F-statistic) 0.0087
JBN – χ2 (1) = 0.33 LM – χ2 (1) = 1.92
Probability (JBN) = 0.85 Probability (LM) = 0.18
ARCH – χ2 (1) = 1.0 CHOW – χ2 (1) = 1.6
Probability (ARCH) = 0.32 Probability (CHOW) = 0.20
Furthermore, it is only the income growth variable that is statistically significant at the 1 percent
level, indicating that in the short run, it is only growth in income that has a relationship with the private saving
rate. The implication is that short run changes in private saving rate that correct for past deviations emanate
principally from changes in income growth. The coefficient estimate shows that a unit change in income
growth will bring about a 0.3 percent change in private saving. The other four explanatory variables (PSR
(-1), RIR, FB and DFD) do not have any short run impact on the private saving rate. This result is in keeping
with the long run relationship where over 50 percent of changes in private saving are explained by changes in
income growth.
Conclusion
This paper has investigated the determinants of private saving in Nigeria for the period 1970-2009.
In the first place, it attempts to shed more light on the problems associated with the conventional models of
determinants of saving. Drawing on econometric analysis, it goes on to propose the alternative of an
Error-Correction Model of the determinants of saving function. The estimation results for the long run
model point to the growth in income and the real interest rate as having statistically significant positive
influences on domestic saving. There is also a clear role for fiscal policy in increasing total saving in the
economy, with the private sector considering public saving as an imperfect substitute for its own saving.
The Ricardian equivalence was thus, found not to hold in Nigeria contrary to what obtains in industrialized
and semi-industrialized economies. Finally, financial development seems not to have any impact on the
saving rate. We began this study by asking what the relevant policies for raising the Nigerian saving rate are.
Our results help to understand the effectiveness of policy variables in raising the saving rate in terms of
their magnitude and direction.
Policy Implications
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A stronger policy framework is imperative in bringing about improved macroeconomic
performance. The government should sustain its National Economic Empowerment and Development
Strategy (NEEDS) programme which is partly responsible for the increasing diversification emerging in the
economy. The growing contribution of non-oil sectors in GDP growth in recent years is a positive
development and should be encouraged. Agriculture has grown strongly in recent years and was the largest
industry contribution to GDP in 2009. With about 70 per cent of the working population employed in the
agricultural sector, the strong agricultural contribution to GDP bodes well for employment. More
importantly, government’s efforts to diversify the economy appear to be yielding results and should be
sustained.
Recommendations
Some major recommendations for policy can be drawn from the analysis. First, the focus of
development policy in Nigeria should be to increase the productive base of the economy in order to promote
real income growth and reduce unemployment. For this to be achieved, a diversification of the country’s
resource base is indispensable. This policy thrust should include a return to agriculture; the adoption of a
comprehensive energy policy, with stable electricity as a critical factor; the establishment of a viable iron and
steel industry; the promotion of small and medium scale enterprises, as well as a serious effort at improving
information technology.
Second, contrary to popular belief, income growth has a negative influence on private saving in
Nigeria. Policy makers should thus take explicit account of this result in the formulation of economic policy.
For instance past experience has shown that rapid increases in wages of urban sector workers did not result in
any appreciable increase in private saving. Rather, the extra income was used in the purchase of mainly
imported consumer goods, thus increasing our dependence on imports.
Third, public saving has been shown to be a complement rather than a substitute for private saving in
Nigeria. Government should therefore sustain its oil- price-based fiscal rule (OPFR) which is designed to link
government spending to notional long run oil price, thereby de-linking government spending from current oil
revenues. This mechanism will drastically reduce the short term impact of fluctuations in the oil price on
government’s fiscal programmes. State governments should also desist from spending their share of excess
crude oil revenue indiscriminately. This is because this practice can severely test the absorptive capacity of
the economy in addition to risking the fuelling of inflation. The challenge is for state governments to save
excess revenue or spend it directly on imported capital goods in order to sustain Nigeria’s hard-won
macroeconomic stability.
Fourth, monetary policy should focus on ways of increasing the abysmally low real interest rate on
bank deposits. It should also devise means of substantially reducing the interest rate spread. Lastly, it is
pertinent to note that even though this paper has concentrated on Nigeria, its results can be applied to other
African countries not previously studied. They contain some valuable lessons for informing policy measures
in the current thrust towards greater mobilization of private saving in the African continent.
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