The Effect of Capital Formation On Economic Growth in Nigeria

ADEWUNMI, KAMAL ADEKUNLE (2019) The Effect of Capital Formation On Economic Growth in Nigeria. In: 17th Annual National Conference of the School of Business Studies, 2-5 July, 2019, Federal Polytechnic Ede, Osun State.

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This paper examined the effect of capital formation on economic growth in Nigeria for the period of 1988 to 2017 using annual time series data on variables such as gross domestic product (dependent variable), gross fixed capital formation, total national savings and foreign direct investment (independent variables). Ex post facto research design was employed for the study and the collated data was sourced from Central Bank of Nigeria Statistical Bulletin, 2017. The data were analysed using E-view version 9. The findings show that gross fixed capital formation, and foreign direct investment have no significant effect on Nigeria’s gross domestic while total national savings have a significant effect on gross domestic product in Nigeria. The study concludedbased on the f statistics probability value of 0.0000 which is lesser than 0.05 critical value. Therefore, capital formation has a significant effect on economic growth in Nigeria for the period under review. The study therefore recommends amongst others that Government must increase their efforts in mobilizing the desired level of gross national savings that could be big enough to attract foreign direct investments. This is very vital as FDI will help to complement our domestic savings.

Item Type: Conference or Workshop Item (Paper)
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Law, Arts and Social Sciences > School of Humanities
Depositing User: Unnamed user with email [email protected]
Date Deposited: 24 Jun 2022 16:27
Last Modified: 24 Jun 2022 16:27

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