Savings, Investment, Capital Mobility, ARDL
This study explores the relationship between savings and investment in Nigeria during the period 1980-2011. Unlike previous studies, this study employed Autoregressive Distributed Lag (ARDL) Bounds testing approach to test for long run relationship. The short-run dynamics are also captured from error correction model (ECM).The results of the Bounds test suggest that there is a long run relationship between savings and investment. This result is consistent with a number of earlier studies reviewed in the literature that found saving and investment to be cointegrated in the long run. The results also support the Feldstein-Horioka (1980) hypothesis that postulates low capital mobility internationally.
CBN Journal of Applied Statistics 2013
Nasiru, Inuwa and Haruna, Usman M.
"The Relationship between Domestic Savings and Investment: The Feldstein-Horioka Test Using Nigerian Data,"
CBN Journal of Applied Statistics (JAS): Vol. 4
, Article 5.
Available at: https://dc.cbn.gov.ng/jas/vol4/iss1/5