Effect Of National Savings On The Nigerian Economy:- Nwosu Onyinyechi D

ABSTRACT

The study investigated the effect of national savings on economic growth in nigeria during theperiod of1981-2017. this study was carried out against the background of crucial role that national savings can play to influence the performance of the economy, one ofthe problem statement ofthis study was that, the country strives to achieve a satisfactory level offoreign reservesfor capitally intensive projects, but the persistent political tussle that has amassed the country with numerous security challenges has limited the desire ofthe nation towards national savings as a portable means ofcapitalformationfor capital projects, the study also examined the impact of interest rate, exchange rate and economic growth, to achieve this objectives, multiple regressions were used in analyzing the data, this regressions include unit root testing, OLS estimation, co-integration test, statistical test and test for autocorrelation, the empirical results shows that GDP, NS, INTR, EXCHR and MS are co-integrated hence, it was deduced that there is a long run relationship between selected national savings and Nigerian economy variables, due to this, some recommendations were made which include CBN should enact policies on FOREX which will affect our EXCHR positively since a decrease in EXCHR affects the economypositively.