IDEAS home Printed from https://ideas.repec.org/a/ids/ajesde/v3y2014i2p103-116.html
   My bibliography  Save this article

Savings, investment and economic growth in Nigeria: a forecast error variance decomposition analysis

Author

Listed:
  • God'stime Osekhebhen Eigbiremolen

Abstract

Using the forecast error variance decomposition (FEVD) of the VAR model, this study critically examined the transmission of shocks among private savings, private investment and economic growth in Nigeria. Annual time series data from 1970-2012 were employed in the analysis. The Johansen cointegration test identifies two cointegrating vectors among the three variables of interest. The forecast error variance decomposition estimates from the VAR model reveal that private savings significantly contribute to the variability of real gross domestic product (a proxy for economic growth) and private investment in Nigeria. On the other hand, the result shows that private investment contributes modestly in explaining the variations of private savings and real gross domestic product. The result further reveals that real gross domestic product does not have direct substantial effects on private savings and private investment variability in Nigeria.

Suggested Citation

  • God'stime Osekhebhen Eigbiremolen, 2014. "Savings, investment and economic growth in Nigeria: a forecast error variance decomposition analysis," African Journal of Economic and Sustainable Development, Inderscience Enterprises Ltd, vol. 3(2), pages 103-116.
    • Handle: RePEc:ids:ajesde:v:3:y:2014:i:2:p:103-116
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=64376
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ajesde:v:3:y:2014:i:2:p:103-116. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=382 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.