Implication Of Interest Rate Structure On Capital Formation In Nigeria 1989 - 2007

ABSTRACT

 This work is based on establishing the implication of interest rate structure on capital formation in Nigeria (1989 - 2007). It is sectioned into five chapters. The first chapter saw introduction of the study featuring among others, background of the study, problems and objective of study as well as the research hypothesis. Chapter two reviews related literatures on interest rate and interest rate determination, factors affecting interest rates and interest rates structure, capital formation etc. In chapter three, we have the research methodology upon which the regression model is specified. Chapter four is the presentation, analysis and interpretation of data including hypothesis testing; under which it is discovered that there is significant relationship between interest structure and capital formation, that lending rate is negatively related to capital formation, Savings rate and minimum rediscount rates are positively related with coefficient of determination of 0.090 and 0.004 respectively. Then chapter five is the summary, recommendation and conclusion.