This study examined impact of oil export on gross capital formation in Nigeria for the period of 1980-2015. The study specified the model as gross capital formation (GCF) being a function of oil export (OEX), real gross domestic product (RGDP) and exchange rate. The pre test carried out in the study are unit root test and co integration test while VECM econometric test was used to test the impact of the explanatory variables on the dependent variable. Based on the above stated econometric procedure, the study found out that: (i) oil export inversely and significantly impacts gross capital formation in Nigeria both in long run and short run within the period under review.(ii) real gross domestic product impacts gross capital formation in Nigeria in the long run during the study time. (iii) There is causal relationship existing between dependent variable and explanatory variables in Nigeria. The study concludes that oil export has not contributed to growth in gross capital formation in Nigeria. Based on the findings above the study recommend that government should legalize the operations of local (illegal) refineries operating in Nigeria and also make our local refineries to operate at full capacity so that it will lead to availability of refined products for domestic consumption and consequently discourage the importation of refined product from abroad thereby saving the country huge foreign exchange hitherto used for importation, to enable the revenue generated from oil export to be used for investment purposes that will boost the gross capital formation of the country which will in turn lead to economic growth.
This study examined the determinants of private domestic savings in Nigeria (1980Nigeria ( -2015, using data obtained from CBN and IMF-IFS online. The econometric analytic tools used are, co integration test, vector error correction model, Granger causality test. In the model, domestic private savings (DPS) is a function of gross domestic product per capita (GDPPC), household consumption (HHC), nominal interest rate (INTRT) and domestic credit to private sector (DCPS%GDP). The study obtained the following results (i) Stable long run relationship was found to exist between the dependent and explanatory variables in the model. (ii) Interest rate has positive significant relationship with domestic private savings in the long run and insignificant influence in the short run in Nigeria within the period under review. (iii) Income has significant Original Research Articlenegative impact on domestic private savings in the long run and insignificant impact in the short run in Nigeria within the period under study. (iv) There is a unidirectional causality running from GDPPC, DCPS%GDP to DPS and bidirectional causality existing between HHC and DPS in Nigeria within the period under consideration. Based on the findings, the study recommends conscious policy aimed at reducing the cost of living of the people, so that the part of disposable income spent on social services will reduce thereby increasing domestic private savings. More so, there is need for the authorities to increase the volume of credit to the private sector and also create an investment friendly environment that will support effective and efficient use of the credit which will in turn increase income and then lead to increase in domestic private savings.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.