Does Interest Rate Really Stimulate Savings in Nigeria?

• Autorzy: Abdurrouf Babalola , Abiodun Ibrahim Abdul
• Języki publikacji: EN

Abstrakty

EN

Research background: Interest rate as a stimulus to savings has been discussed by many scholars while ancient scholars kicked against the collection of usury (interest). Developing countries like Nigeria may not be stimulated with the rate of interest because of its insignificant level, which is presently causing financial exclusion against the opponents of interest. Purpose: This study examines whether interest rate really stimulates savings in Nigeria. Research methodology: The study covers the post-liberalization period between 1987 and 2021. The research employs the Vector Autoregressive/Error Correction techniques to analyze the data and make statistical inferences. Results: The results of the show that interest rate (deposit rate) has a positively non-significant effect on savings in Nigeria. On the contrary, the Treasury bill rate, Insecurity and Inflation rate have a significant impact on savings in Nigeria. Novelty: No existing study has been made to investigate if the interest rate (deposit rate) has the ability to stimulate domestic savings in the Nigerian economy. None has included the Insecurity index and none has used the vector autoregressive error correction tools to analyze this inquiry so "Does Interest Rate Really Stimulate Savings in Nigeria? (original abstract)

Słowa kluczowe

EN

Savings; Interest rate; Bank deposit; Treasury bill; Uncertainty

PL

Oszczędności; Stopa procentowa; Depozyt bankowy; Bony skarbowe; Niepewność

• Czasopismo: Folia Oeconomica Stetinensia
• Rocznik: 2022
• Numer: vol. 22, iss. 2
• Strony: 18--37

Twórcy

autor

Abdurrouf Babalola

• Al-Hikmah University Ilorin, Nigeria

autor

Abiodun Ibrahim Abdul

• University of Abuja, FCT, Nigeria

Bibliografia

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Identyfikatory

DOI

10.2478/foli-2022-0017