THE DETERMINANTS OF SAVINGS IN A DEREGULATED ECONOMY THE NIGERIAN EXPERIENCE (1986 – 2010)

ABSTRACT This study is aimed at finding out the determinants of savings in a deregulated economy.  The Nigerian experience (1980-2010).  The following hypothesis was formulated to guide the study. Ho: Interest rate has no significant impact on national savings in deregulated economy of Nigeria. Ho: inflation rate has no significant impact on national savings in deregulated economy of Nigeria. Ho: Exchange rate has no significant impact on national savings in deregulated economy of Nigeria. The methodology adopted was the simple linear regression using the ordinary least square (OLS) technique. The analysis yielded some interesting findings that national saving which normally leads to investment are being determined by many factors such as interest rate, inflation rate, Exchange rate and many other variables not mentioned in this work. Though, some of these variables have negative relationship with national savings, they in one way or the other affect savings in a deregulated economy of Nigeria.  Based on the findings some recommendations were made which include the following: That effort should be geared by government towards encouraging savings which normally increase investment. Having been from the study that inflation rate has a negative relationship with national savings, government and her policy makers should always try to keep inflation rate as low as possible.  Interest rate should always be monitored so as to make sure that prospective savers are not discouraged from savings. Exchange rate as one of the independent variables and determinant of savings should always be monitored using appropriate monetary policy variable. Finally, further studies should be encouraged to find other economic variables not mentioned in this study that affect savings as well as investment in Nigeria. 

TABLE OF CONTENT Cover pagei Title Pageii Approvaliii Dedication  Acknowledgement iv Abstractv Table of Content
Chapter One:  Introduction 1.1Background of the Study 1 1.2Statement of Problem 5 1.3Objective of the Study 6 1.4Hypothesis of the Study 6 1.5Scope of the Study 8 1.6Significance of the Study 9 Reference 10
Chapter Two:  Literature Review 2.1Theoretical Review11  2.1.1The Classical Theory 11 2.1.2The Keynesian Theory13 2.1.3The Post Keynesian Theories16 2.2Empirical Literature20 2.3Limitation of the Previous Studies21 References 23
CHAPTER THREE:   Research Design and Methodology 3.1Research Methodology24 3.2Model Specification 25 3.3Method of Evaluation26 3.4Decision Rule28 3.5Data Requirement and Sources29 3.6Econometrics Software30 Reference 
CHAPTER FOUR:  PRESENTATION AND ANALYSIS OF RESULT 4.1Presentation of Empirical Results 31 4.2Examination of the Algebraic Signs of the  Parameter Estimates 32 4.3 Statistical Test of Significance33 4.4Evaluation of the Working Hypothesis 37 4.5Policy Implication of the Result39
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 5.1Summary of Findings 41 5.2Conclusion 42 5.3Recommendations43 Bibliography  Appendix