Bank Savings and Bank Credits in Nigeria: Determinants and Impact on Economic Growth

Orji, A. (2012), “Bank Savings and Bank Credits in Nigeria: Determinants and Impact on Economic Growth” (International Journal of Economics and Financial Issues 2(3):357-372, Turkey)

16 Pages Posted: 7 Dec 2013

See all articles by Anthony Orji

Anthony Orji

University of Nigeria - Department of Economics

Date Written: May 4, 2012

Abstract

This study investigated the determinants of bank savings in Nigeria as well as examined the impact of bank savings and bank credits on Nigeria’s economic growth from 1970-2006. We adopted two impact models; Distributed Lag-Error Correction Model (DL-ECM) and Distributed Model. The empirical results showed a positive influence of values of GDP per capita (PCY), Financial Deepening (FSD), Interest Rate Spread (IRS) and negative influence of Real Interest Rate (RIR) and Inflation Rate (INFR) on the size of private domestic savings. Also a positive relationship exists between the lagged values of total private savings, private sector credit, public sector credit, interest rate spread, exchange rates and economic growth. We therefore recommend, among others, that government’s effort should be geared towards improving per capita income by reducing the unemployment rate in the country in a bid to accelerate growth through enhanced savings.

Keywords: Bank; Saving; Credit; Financial Sector; Economic Growth

JEL Classification: E51; G21; G24; O16; O4

Suggested Citation

Orji, Anthony, Bank Savings and Bank Credits in Nigeria: Determinants and Impact on Economic Growth (May 4, 2012). Orji, A. (2012), “Bank Savings and Bank Credits in Nigeria: Determinants and Impact on Economic Growth” (International Journal of Economics and Financial Issues 2(3):357-372, Turkey) . Available at SSRN: https://ssrn.com/abstract=2364011

Anthony Orji (Contact Author)

University of Nigeria - Department of Economics ( email )

Department of Economics,
University of Nigeria Nsukka
Nigeria

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