Econometrics Analysis Of Gross National Income On Consumption Expenditure Of Federal Republic Of Nigeria

1.4 scope of the study

the information used in this study is extracted from the central bank of Nigeria (cbn) financial and economic review of 1992 – 2011.

The study was to cover gross national income and consumption expenditure meant of the federal republic of Nigeria.

Basically, econometrics methods of analysis would be employed on the economic variables in evaluating their performances based on the information collected.

1.5 definition of concepts.

Concepts and terms relating to evaluation of research study are:-

National income

This is the market value (total money value) of all final goods and services produced in an economy as well as the incomes generated by economic agents (buyers and sellers) over a period of time usually a year.

Consumption.

It is the sum of current expenditure on goods and services either by the private or government. Consumption is the ultimate objective of economic activities to create utility so as to satisfy human wants.

The private sector constitutes the largest component of national product. This is divided into three main categories 

Namely; durable consumption expenditure includes expenditures on administrative and internal security, economic services, social and community services and transfer payments. 

1.6 survey methodology

the method of data collection employed in third study is purely secondary data collection.

All data were extracted from the CBN financial and economic review from 1992 – 2011 via the CBN website.

1.7 Limitation of the research.

Unlike the primary data where researcher knows the condition under which the data were collected and quite aware of any limitation they may contains, the reverse is the case in a secondary data. Users of secondary data cannot have through understanding of the background as the original investigator and so he is unaware of any limitation.

Though the data that would be presented by such a financial house as CBN could be said to be accurate. Such data items and information is usually cumbersome and climsy for easy analysis. Because their accuracy in estimation may be subjected to errors particularly the cross national income

The likely limitation may be when these data were collected and estimate from source. Which is still a primary business of the data.