Affiliation:
1. Umaru Musa Yar'adua University, Katsina State Nigeria Senior Lecturer, Department of Economics
2. Al-Qalam University Nigeria Department of Economics
3. University of Abuja Nigeria Department of Economics
4. National Pension Commission Nigeria
Abstract
This study investigates the effect of pensions on savings in Nigeria using quarterly data over the 2004-2015 period. Employing the ARDL bounds testing technique, the empirical evidence reveal that there is cointegration between pensions and savings, along with internal conflicts, unemployment, real interest rate and income level. The results indicate that pensions has a negative and significant effect on savings in the short-run, while its effect on savings is positive and significant in the long-run. These findings suggest that the availability of pensions will displace savings in the short-run, while it provides an avenue for individuals to increase their retirement income in the long-run, leading to higher national savings. In addition, internal conflicts and unemployment have a negative and significant effect on savings in the short-run and the long-run. Based on these findings, this study recommends policies to promote pension contributions, including reducing internal conflicts and unemployment to raise savings in Nigeria in the long-run.
Publisher
Editura Universitatii Alexandru Ioan Cuza din Iasi
Subject
General Economics, Econometrics and Finance,General Business, Management and Accounting
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