📄 Abstract
This study intend to examine some factors that determine consumption in Nigeria from 1974 to 2021. The main objective of the study is to investigate the determinants of private consumption as the dependent variable while using households income(proxy for compensation to employees),inflation rate ,interest rate and government consumption as selected independent variables. The study employ Granger causality test for significant check on the causal relation , dynamic ordinary least square(DOLS) and the autoregressive distributive lagged(ARDL) techniques for estimation of long-run relation of these variables, where also ARDL dual advantage is significant benefit to estimate the short run effect of the relationships between the variables makes the study more robust . The DOLS and ARDL cointegration results show the presence of long run relation between households income and private consumption . The short run (ECM) has shown that households income and government consumption influence private consumption and their respective effect is insignificant. The Granger causality result also show causality from households income to private consumption. This study recommends that appropriate policies should be formulated on how best to stimulate the various aspects of private consumption to curb any form of reduction in private consumption in Nigeria.
📚 How to Cite:
KEN-EKRIKA Blessing Tamarakouro, Prof. C.O Orubu , DETERMINANTS OF PRIVATE CONSUMPTION IN NIGERIA , Volume 11 , Issue 1, january 2024, EPRA International Journal of Economics, Business and Management Studies (EBMS) ,