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Full-Text Articles in Social and Behavioral Sciences
Policy Trilemma And Interest Rate Behaviour In Nigeria, Korede Ajogbeje, Oluwatosin Adeniyi, Festus O. Egwaikhide
Policy Trilemma And Interest Rate Behaviour In Nigeria, Korede Ajogbeje, Oluwatosin Adeniyi, Festus O. Egwaikhide
CBN Journal of Applied Statistics (JAS)
Policy makers face trade-off in dealing with exchange rate management, monetary independence and concerns about capital mobility simultaneously. This study empirically examines the effects of Nigeria’s trilemma policy path on interest rate using data spanning from 1997:Q1 to 2017:Q3. It equally incorporates the role of external reserves in buffering these effects. Stationarity of the series were ascertained with Zivot-Andrew (ZA) structural break unit roots test technique, while the bounds test cointegration approach was used to confirm the cointegrating properties of the variables. We found that capital mobility has significant effect on interest rate in the long run baseline model and …
The Relationship Between Domestic Savings And Investment: The Feldstein-Horioka Test Using Nigerian Data, Inuwa Nasiru, Usman M. Haruna
The Relationship Between Domestic Savings And Investment: The Feldstein-Horioka Test Using Nigerian Data, Inuwa Nasiru, Usman M. Haruna
CBN Journal of Applied Statistics (JAS)
This study explores the relationship between savings and investment in Nigeria during the period 1980-2011. Unlike previous studies, this study employed Autoregressive Distributed Lag (ARDL) Bounds testing approach to test for long run relationship. The short-run dynamics are also captured from error correction model (ECM).The results of the Bounds test suggest that there is a long run relationship between savings and investment. This result is consistent with a number of earlier studies reviewed in the literature that found saving and investment to be cointegrated in the long run. The results also support the Feldstein-Horioka (1980) hypothesis that postulates low capital …