ABSTRACT
The objective of the study is to examine the impact of inflation on investment and economic growth and the key role it plays in the economy. This work is to examines not only the effect of inflation on investment and economic growth, it also investigate its effect on other macroeconomic variables. The implication of our result shows that some of the variables used in this work are significant. Thus, it was recommended that a reallocation of some stringent regulations, which discourage investment affecting economic growth should be a matter of necessity and imperative. Checking of economic imbalance and political instability, as well as control of the level of importation to combat inflation to a single unit and attract Foreign Direct Investment (FDI) is of essence. As such a conducive environment would encourage and attract more foreign investors which will definitely boost the Balance of payment. Also, establishing an efficient exchange rate regime, discouraging high lending rate, encouraging savings, motivating import substitution and increasing reasonably the level of private investment will encourage sustainable growth and development in Nigeria.
TABLE OF CONTENT
TITLE PAGE – – – – – – – – i
CERTIFICATION – – – – – – – ii
DEDICATION – – – – – – – ii
ACKNOWLEDGEMENT – – – – – – iv
ABSTRACT – – – – – – – – vi
TABLE OF CONTENTS – – – – – vii
LIST OF TABLES – – – – – – ix
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study – – – – 1
1.2 Statement of the Problem – – – – 4
1.3 Research Questions – – – – – – 5
1.4 Objective of the Study – – – – – 5
1.5 Research Hypothesis – – – – – 6
1.6 Justification of the Study – – – – – 6
1.7 Scope of the study – – – – – – 6
1.8 Organization of the Study – – – – – 7
CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL FRAMEWORK
2.0 Conceptual Literature – – – – – 8
2.1 Conceptual Review – – – – – 8
2.2 Theoretical Review – – – – – 31
2.3 Empirical Review – – – – – 46
- Domestic savings gap – – – – – 50
2.5 Summary of literature review and research gap – – 51
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design – – – – – – 53
3.2 Sources of Data – – – – – – 53
3.3 Methods of Data Collection – – – – 54
3.4 Model Specification – – – – – 55
3.4.1 Statistical Criteria for the Ordinary Least Square Estimation 56
3.5 Model Estimation – – – – – – 57
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Presentation of results – – – – 59
4.2 Analysis of Results – – – – – 61
4.3 Test of hypothesis analysis – – – – 69
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of Major Findings – – – – 71
5.2 Conclusion – – – – – – – 74
5.3 Recommendation – – – – – – 74
REFERENCES – – – – – – 77
APPENDIX – – – – – – 83
