DO INTEREST RATES AND SAVINGS CAUSE DOMESTIC INVESTMENTS IN DEVELOPING ECONOMIES? MACROFINAMETRIC EVIDENCE FROM NIGERIA

摘要

The study revisited the nexus between savings, investments and interest rates, in the regime of ensuing controversies and inconsistent empirical submissions by various authors, in an attempt to lie to rest the question of whether or not savings and interest rates constitute major causal factors of domestic investments in developing countries, such as Nigeria, use was made of causality, co-integration, and error correction techniques applied to annual time-series Nigerian data from 1981 through 2017. The result verified the claims of theory that interest rates negatively and significantly drive investments, while savings positively drive investments remarkably in developing countries.