Macroeconomic Variables And Savings Mobilization In Nigeria
DOI:
https://doi.org/10.31686/ijier.vol3.iss1.304Keywords:
Financial Deepening, Macroeconomic Variables, Savings MobilizationAbstract
This research work analyzed the impact of macroeconomic variables on domestic savings mobilization in Nigeria (1993-2012).Secondary data was adopted and sourced from CBN statistical bulletin.Ordinary Least Square and cointegration were used to determine the effects of the selected macroeconomic variables on savings mobilization in Nigeria. The result of the overall statistic showed that there is a positive and significant impact between the selected macroeconomic variables and domestic savings mobilization in Nigeria. But specifically, financial deepening seemed to have a greater impact on savings mobilization in Nigeria. Inflation and exchange rate revealed an inverse relationship with domestic saving mobilization in Nigeria. Augmented Dicker Fuller (ADF) unit root test and cointegration proved that the variables are stationary and there exist a long-run relationship among the variables. The study therefore recommended among others that efforts should be geared towards continuous and well-articulated fiscal and monetary policies that will sustain this growth in the financial sector. Also, Government should ensure that adequate macroeconomic policies that will be put in place to attract foreign investors, encourage export and make Nigeria an export platform where export goods could be produced, this will help to strengthen Nigeria’s exchange rate and induce domestic savings. Finally, proper measures should be put into encourages banks to open branches in the rural areas in order to mop up deposits. The rural banking policies should be revisited modified and implemented in Nigeria.
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