Journal of Economic, Finance Research and Review (JEFRR) · Research article · Open access
Savings, Investment and Economic Growth in Nigeria: Evidence from ARDL Bounds Testing and Granger Causality
Dr Uduakobong Samuel Inam, Irene Baldoma Usoro
20 July 2026 · Vol. 2, Issue 7, pp. 404-420
DOI: 10.65150/EP-jefrr/V2E7/2026-05
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What is this article about?
The study examined the relationship between Savings, Investment and Economic Growth in Nigeria using time series data covering the period of 1990 to 2020. Specifically, the study examined: the effects of gross domestic savings on economic growth; and the effects of gross domestic investment on economic growth in Nigeria.
Article at a glance
- Published
- 20 July 2026
- Volume / issue / pages
- Vol. 2, Issue 7, pp. 404-420
- ISSN
- 3051-3650 (online) · 3051-3642 (print)
- Licence
- CC BY 4.0 — free to read and reuse with attribution
- Peer review
- Double-blind, at least two independent reviewers
- Publisher
- EP Journals Group
Abstract
The study examined the relationship between Savings, Investment and Economic Growth in Nigeria using time series data covering the period of 1990 to 2020. Specifically, the study examined: the effects of gross domestic savings on economic growth; and the effects of gross domestic investment on economic growth in Nigeria. It investigated the existence of a long run relationship between Savings, Investment and Economic Growth in Nigeria and as well examined the causal relationship between Savings, Investment and Economic Growth in Nigeria. The study employed Autoregressive Distributed Lag (ARDL) model. The ARDL long-run bounds test established the existence of long run effects of savings and investment on economic growth in Nigeria. The study revealed that savings has a positive and statistically significant relationship with economic growth in the short run and in the long run. On the contrary, investment has a negative and statistically significant relationship with economic growth in the short run and in the long run. The ECM result revealed that about 68.9% of the short run disequilibrium and inconsistencies are corrected and adjusted to long run equilibrium path. The Granger Causality test revealed no causal relationship between savings and economic growth as well as none between investment and economic growth. The study recommends that the government and policy makers should formulate and implement policies that will encourage savings and enhance the savings culture. Additionally, investment expenditures should be prioritized and strategically channeled to the real sector to boost output growth
Keywords: Savings, Investment, Economic growth, ARDL model, Co-integration, Error correction
Cite this article
Dr Uduakobong Samuel Inam, & Irene Baldoma Usoro (2026). Savings, Investment and Economic Growth in Nigeria: Evidence from ARDL Bounds Testing and Granger Causality. Journal of Economic, Finance Research and Review, 2(7), 404-420. https://doi.org/10.65150/EP-jefrr/V2E7/2026-05
@article{Dr2026,
title = {Savings, Investment and Economic Growth in Nigeria: Evidence from ARDL Bounds Testing and Granger Causality},
author = {Dr Uduakobong Samuel Inam and Irene Baldoma Usoro},
journal = {Journal of Economic, Finance Research and Review},
year = {2026},
volume = {2},
number = {7},
pages = {404-420},
doi = {10.65150/EP-jefrr/V2E7/2026-05},
url = {https://doi.org/10.65150/EP-jefrr/V2E7/2026-05}
}Questions about this article
Who wrote this article?
Dr Uduakobong Samuel Inam, Irene Baldoma Usoro.
Where and when was it published?
In Journal of Economic, Finance Research and Review, Volume 2, Issue 7, pages 404-420, published by EP Journals Group on 20 July 2026.
Is this article free to read?
Yes. It is open access under a Creative Commons Attribution 4.0 (CC BY 4.0) licence, so anyone can read, share and reuse it with attribution.
What is the DOI of this article?
10.65150/EP-jefrr/V2E7/2026-05 (https://doi.org/10.65150/EP-jefrr/V2E7/2026-05).
How do I cite this article?
APA: Dr Uduakobong Samuel Inam, & Irene Baldoma Usoro (2026). Savings, Investment and Economic Growth in Nigeria: Evidence from ARDL Bounds Testing and Granger Causality. Journal of Economic, Finance Research and Review, 2(7), 404-420. https://doi.org/10.65150/EP-jefrr/V2E7/2026-05
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