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THE EFFECT OF CAPITAL FORMATION ON ECONOMIC GROWTH IN NIGERIA (1980-2010)


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THE EFFECT OF CAPITAL FORMATION ON ECONOMIC GROWTH IN NIGERIA (1980-2010)

Project Material on; THE EFFECT OF CAPITAL FORMATION ON ECONOMIC GROWTH IN NIGERIA (1980-2010)

THE EFFECT OF CAPITAL FORMATION ON ECONOMIC GROWTH IN NIGERIA (1980-2010)

 

ABSTRACT

The study examines the effects of capital formation on Nigerian economic growth in Nigeria for the period of 30 year ranging from 1980 to 2010. Annual figures were collated for gross domestic product, gross fixed capital money supply, inflation and government deficit for the years under study. The figures were analyzed using ordinary least square (OLS). A model was built with Gross Domestic product (GDP) as dependent variable while gross fixed capital money supply, inflation and government deficit were the independent variables. From the findings, we discovered that Gross fixed capital and government deficit contributed significant and positive to GDP while money supply and inflation have not had significant impact on GDP in Nigeria.


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