IDEAS home Printed from https://ideas.repec.org/a/aic/revebs/y2010i5abun.html
   My bibliography  Save this article

Saving-Economic Growth Nexus In Nigeria, 1970-2007: Granger Causality And Co-Integration Analyses

Author

Listed:
  • Nurudeen ABU

    () (Department of Economics, University of Abuja, PMB 117, Abuja-Nigeria,)

Abstract

The controversy surrounding the direction of causality between saving and economic growth motivated this study. The author employed the Granger-causality and co-integration techniques to analyze the relationship between saving and economic growth in Nigeria during the period 1970-2007. The Johansen co-integration test indicates that the variables (economic growth and saving) are co-integrated, and that a long-run equilibrium exists between them. In addition, the granger causality test reveals that causality runs from economic growth to saving, implying that economic growth precedes and granger causes saving. Thus, we reject the Solow’s hypothesis that saving precedes economic growth, and accept the Keynesian theory that t is economic growth that leads to higher saving. The author recommends that government and policy makers should employ policies that would accelerate economic growth so as to increase saving.

Suggested Citation

  • Nurudeen ABU, 2010. "Saving-Economic Growth Nexus In Nigeria, 1970-2007: Granger Causality And Co-Integration Analyses," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 5, pages 93-104, June.
  • Handle: RePEc:aic:revebs:y:2010:i:5:abun
    as

    Download full text from publisher

    File URL: http://rebs.ro/resource/REBS_5/Focus%20On%20Economic%20Development%20In%20Africa/Abu,N%20%97%20Saving-Economic%20Growth%20Nexus%20In%20Nigeria,1970-2007%20Granger%20Causality%20And%20Co-Integration%20Analyses.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Piotr Misztal, 2011. "The Relationship Between Savings And Economic Growth In Countries With Different Level Of Economic Development," "e-Finanse", University of Information Technology and Management, Institute of Financial Research and Analysis, vol. 7(2), pages 17-29, August.
    2. Abdelhafidh, Samir, 2013. "Potential financing sources of investment and economic growth in North African countries: A causality analysis," Journal of Policy Modeling, Elsevier, vol. 35(1), pages 150-169.

    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:aic:revebs:y:2010:i:5:abun. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sireteanu Napoleon-Alexandru). General contact details of provider: http://edirc.repec.org/data/feaicro.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.