Bank Savings and Bank Credits in Nigeria: Determinants and Impact on Economic Growth
This study investigated the determinants of bank savings in Nigeria as well as examined the impact of bank savings and bank credits on Nigeria’s economic growth from 1970-2006. We adopted two impact models; Distributed Lag-Error Correction Model (DL-ECM) and Distributed Model. The empirical result...
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| Format: | Article |
| Language: | English |
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EconJournals
2012-07-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/67 |
| _version_ | 1797911537369743360 |
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| author | Orji Anthony |
| author_facet | Orji Anthony |
| author_sort | Orji Anthony |
| collection | DOAJ |
| description |
This study investigated the determinants of bank savings in Nigeria as well as examined the impact of bank savings and bank credits on Nigeria’s economic growth from 1970-2006. We adopted two impact models; Distributed Lag-Error Correction Model (DL-ECM) and Distributed Model. The empirical results showed a positive influence of values of GDP per capita (PCY), Financial Deepening (FSD), Interest Rate Spread (IRS) and negative influence of Real Interest Rate (RIR) and Inflation Rate (INFR) on the size of private domestic savings. Also a positive relationship exists between the lagged values of total private savings, private sector credit, public sector credit, interest rate spread, exchange rates and economic growth. We therefore recommend, among others, that government’s effort should be geared towards improving per capita income by reducing the unemployment rate in the country in a bid to accelerate growth through enhanced savings.
Keywords: Bank; Saving; Credit; Financial Sector; Economic Growth
JEL Classifications: E51; G21; G24; O16; O4
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| first_indexed | 2024-04-10T11:43:23Z |
| format | Article |
| id | doaj.art-cdf6b0bcc0ff43ec89732594c4aa4ec8 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T11:43:23Z |
| publishDate | 2012-07-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-cdf6b0bcc0ff43ec89732594c4aa4ec82023-02-15T16:17:28ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382012-07-0123Bank Savings and Bank Credits in Nigeria: Determinants and Impact on Economic GrowthOrji Anthony0Department of Economics, University of Nigeria, Nsukka This study investigated the determinants of bank savings in Nigeria as well as examined the impact of bank savings and bank credits on Nigeria’s economic growth from 1970-2006. We adopted two impact models; Distributed Lag-Error Correction Model (DL-ECM) and Distributed Model. The empirical results showed a positive influence of values of GDP per capita (PCY), Financial Deepening (FSD), Interest Rate Spread (IRS) and negative influence of Real Interest Rate (RIR) and Inflation Rate (INFR) on the size of private domestic savings. Also a positive relationship exists between the lagged values of total private savings, private sector credit, public sector credit, interest rate spread, exchange rates and economic growth. We therefore recommend, among others, that government’s effort should be geared towards improving per capita income by reducing the unemployment rate in the country in a bid to accelerate growth through enhanced savings. Keywords: Bank; Saving; Credit; Financial Sector; Economic Growth JEL Classifications: E51; G21; G24; O16; O4 https://www.econjournals.com/index.php/ijefi/article/view/67 |
| spellingShingle | Orji Anthony Bank Savings and Bank Credits in Nigeria: Determinants and Impact on Economic Growth International Journal of Economics and Financial Issues |
| title | Bank Savings and Bank Credits in Nigeria: Determinants and Impact on Economic Growth |
| title_full | Bank Savings and Bank Credits in Nigeria: Determinants and Impact on Economic Growth |
| title_fullStr | Bank Savings and Bank Credits in Nigeria: Determinants and Impact on Economic Growth |
| title_full_unstemmed | Bank Savings and Bank Credits in Nigeria: Determinants and Impact on Economic Growth |
| title_short | Bank Savings and Bank Credits in Nigeria: Determinants and Impact on Economic Growth |
| title_sort | bank savings and bank credits in nigeria determinants and impact on economic growth |
| url | https://www.econjournals.com/index.php/ijefi/article/view/67 |
| work_keys_str_mv | AT orjianthony banksavingsandbankcreditsinnigeriadeterminantsandimpactoneconomicgrowth |