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Impact of Savings on Financial Development of Nigeria

IMPACT OF SAVINGS ON FINANCIAL DEVELOPMENT OF NIGERIA


ABSTRACT

This research work seeks to examine the impact of savings on financial development in Nigeria. Time series data from 1970 to 2013 were computed from world development indicators. The period was assumed long enough to proffer solution for the improvement of savings in the economy. The study used an Autoregressive Distributed Lagged (ARDL) estimation technique, built on the McKinnon complementary hypothesis framework to investigate the impact of savings on financial development.

The result revealed that domestic savings has a positive significant on financial development both in long and short-run in Nigeria. It is also seen that inflation has a negative significant on financial development in the long and short run. The study therefore concluded that since interest on deposit propel depositors to save, the interest rate should be increased in other to enhance savings which in turn leads to effectiveness of the financial system.


CHAPTER ONE

1.1 Introduction

… This chapter will address the background information that motivated this study, the challenges that prompted it, its aim, and its objectives as a preface to subsequent sections of the study. Additional factors include the study's significance, scope, limitations, research questions and hypotheses, and the definition of technical terms.


CHAPTER TWO

2.0 Literature Review

2.1 Introduction

The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …


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