The Social Sciences

Year: 2013
Volume: 8
Issue: 3
Page No. 224 - 230

Relationship Between Savings and Economic Growth in Nigeria

Authors : Abiodun S. Bankole and Basiru Oyeniran Fatai

Abstract: This study examined the cause and effect relationship between domestic savings and economic growth in Nigeria during the period 1980-2010. The researchers employed the Granger-causality and Engle-Granger co-integration techniques to analyze the relationship between savings and economic growth. In addition, the granger causality test revealed that causality runs from savings to economic growth in Nigeria. Thus, the researchers accept the Solow’s hypothesis that savings precedes economic growth but reject the Keynesian theory that it is economic growth that leads to higher savings. The researchers recommended that government and policy makers should employ policies that would accelerate domestic savings so as to increase economic growth.

How to cite this article:

Abiodun S. Bankole and Basiru Oyeniran Fatai, 2013. Relationship Between Savings and Economic Growth in Nigeria. The Social Sciences, 8: 224-230.

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