• The Impact Of Interest Rate On Domestic Investment

  • TABLE OF CONTENTS -- [Total Page(s) 1]

    Page 1 of 1

    • Title page                                    
      Certification page                    
      Approval page                        
      Dedication            
      Acknowledgement                            
      Abstract                            
      Table of content                
      CHAPTER ONE: INTRODUCTION
      1.1 Background of the Study                
      1.2 Statement of the Problem        
      1.3 Research Questions        
      1.4 Objectives of the Study
      1.5 Hypotheses of the Study        
      1.6 Significance of the Study
      1.7 Scope and Limitations of the Study
      CHAPTER TWO: LITERATURE REVIEW
      2.1 Conceptual Literature            
      2.1.1 The Concept of Interest Rate
      2.1.2 The Concept of Investment        
      2.2 Theoretical Literature            
      2.2.1 The Classical Theory of Interest Rate
      2.2.2 The Loanable Funds Theory of Interest Rate            
      2.2.3 Keynes Liquidity of Preference Theory of Interest Rate 
      2.2.4 Accelerator Theory of Investment     
      2.2.5 Tobin Q Theory of Investment    
      2.2.6 Keynes Theory of Investment 
      2.3 Empirical Literature    
      2.4 Gap in Literature                    
      CHAPTER THREE: METHODOLOGY
      3.1 Theoretical Framework        
      3.2 Model Specification
      3.3    Method of Evaluation                
      3.3.1 Preliminary Tests                
      3.3.2 Economic Criterion Test (A priori Test)
      3.3.3 Statistical Test of Significance        
      3.3.3.1 Test for Goodness of Fit            
      3.3.3.2 T-Test of Significance    
      3.3.3.3 f-test of Significance                
      3.3.4 Econometrics Test of Significance    
      3.3.4.1 Autocorrelation Test
      3.3.11 Unit Root/Stationary Test        

      3.3.1.2 Co-integration test                    
      3.3.1.3 Error Correction Model (ECM)                
      3.4 Data Required and Sources                
      CHAPTER FOUR:PRESENTATION AND ANALYSIS OF RESULTS
      4.1 Unit Root Test                        
      4.2 Cointegration Test            
      4.3 Regression Analysis                        
      4.3.1 Coefficient Interpretation of the Variables                
      4.3.2 Coefficient of Determination (R-Squared, R2)            
      4.3.3 Autocorrelation Test                                 
      4.5 Test of Hypotheses                         
      4.6 Implications of the Results                
      CHAPTER FIVE:SUMMARY, CONCLUSION AND RECOMMENDATION
      5.0 Summary of Findings                        
      5.2 Conclusion                                
      5.3 Recommendation                        
      Appendix 

  • TABLE OF CONTENTS -- [Total Page(s) 1]

    Page 1 of 1

    • ABSRACT - [ Total Page(s): 1 ]The relationship between interest rate and domestic investment has attracted the attention of economists and other economic experts. This study carried out an empirical analysis of the impact of interest rate on domestic investment in Nigeria covering the period 1980-2016. Data for the research was extracted from the central bank of Nigeria statistical bulletin. The methodology adopted in the research is the multiple linear regression with the application of Ordinary least Squares (OLS) techniqu ... Continue reading---

         

      APPENDIX A - [ Total Page(s): 2 ]Appendix II Unit Root Tests   Null Hypothesis: INVESTMENT has a unit root   Exogenous: Constant     Lag Length: 1 (Automatic - based on SIC, maxlag=9)                         ... Continue reading---

         

      CHAPTER ONE - [ Total Page(s): 1 ]INTRODUCTION   1.1 Background of the Study The behaviour of interest rates, to a large extent, determines the investment activities and hence economic growth of a country. Investment depends upon the rate of interest involved in getting funds from the market, while economic growth to a large extent depends on the level investment. According to Jhingan (2003), if the rate is high investment is at low level. A low rate of interest leads to an increase in investment. There is therefore a ... Continue reading---

         

      CHAPTER TWO - [ Total Page(s): 4 ]Obamuyi (2009) investigated the relationship between interest rates and economic growth in Nigeria, using time series analysis and annual data from 1970 - 2006. The co-integration and error correction model were used to capture both the long-run and short-run dynamics of the variables in the model. The empirical results indicate that real lending rates have significant effect on economic growth. There also exists a unique long-run relationship between economic growth and its determinants, includ ... Continue reading---

         

      CHAPTER THREE - [ Total Page(s): 1 ]METHODOLOGY This study makes use of econometric procedure in estimating the impact of interest rate on economic growth in Nigeria. The Ordinary Least Square (OLS) technique is employed in obtaining the numerical estimates of the coefficients in different equations. The OLS method is chosen because it possesses some optimal properties: its computational procedure is fairly simple and it is also an essential component of most other estimation techniques. Secondly, this technique has been adopte ... Continue reading---

         

      CHAPTER FOUR - [ Total Page(s): 1 ]PRESENTATION AND ANALYSIS OF RESULTS 4.1 Unit Root Test In a research involving the use of time series data, it is ideal to carry out stationarity tests on the series to be used. This is justified on the grounds that data not found stationary have the tendency of yielding spurious regression results and thus misleading policy projections. Below is the variables made stationary with their corresponding order of integration. Table 4.1: Unit Root Test VARIABLE ... Continue reading---

         

      CHAPTER FIVE - [ Total Page(s): 1 ]SUMMARY, CONCLUSION AND RECOMMENDATION 5.0 Summary of Findings The main focus of this research has been to carry out empirically the impact of rate on domestic investment in Nigeria covering the period 1980-2016. In the course of the study, the historical background of interest rate and investment were reviewed. Furthermore, the problems of interest rate fluctuations and its possible effect on investment was evaluated. The chapter two was a compendium of literature was the views and resear ... Continue reading---

         

      REFRENCES - [ Total Page(s): 1 ]Adeyeye, U. (2006­) Interest Rate Regulation, Deregulation and Saving Mobilization in Nigeria, 1970-1994. An unpublished M. Sc thesis, Dept of Economics, A. B. U. Zaria. Abdul, A. and Marwan, S. (2013) “Finance and Growth: Some Theoretical Considerations and A Review of the Empirical Literature” Economic Department Working Paper 228, Organization for Economic Co – operation and Development (OECD), Paris. Akomolate, A.S and Ajiboye, G.U (2015) “An Econometric Study of the Market fo ... Continue reading---