Domestic Investment, Capital Formation and Population Growth in Nigeria
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Abstract
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Capital formation issues had hardly received attention of the Nigerian academic until recently, though it is a
measure of capital accumulation that impacts the productive capacity of the economy. Population growth in the
face of dwindling and inadequate real in
increase in poverty. This paper shows that the rate of investment does not assist the rate of growth of per capital
GDP in Nigeria. Secondary data employed are from the Central Bank of Ni
expenditure bank credit and capital formation while growth and investment rates are from World Economic
Information database. It is also observed that investment rates of the country have fluctuated wildly. Investm
has not translated into capital formation and has not aided growth in Nigeria. The paper tests on the curve
estimation regression models confirm that growth is in existence but is found to be insignificant. The linear
result indicates the importance of government expenditure, capacity utilisation and bank credit in increasing the
income of Nigerians. The results also show that there is negative relationship between growth rates of the
population and capital formation. With the curve estimation method r
in the economy though slowly, on a linear path. It makes useful recommendations on how to increase and sustain
capital formation to increase income and to avoid further poverty in the country.
Keywords
HB Economic Theory