THE IMPACT OF INTEREST RATE ON INVESTMENT DECISION IN NIGERIA. AN ECONOMETRIC ANALYSIS (1981-2010)

67 PAGES (6456 WORDS) Economics Project

ABSTRACT
The focus of this research work is based on the impact of interest rate on investment decision in Nigeria. An econometric analysis between the periods of 1981-2010. Secondary data obtained from the central bank of Nigeria (CBN) statistical bulletin (volume 21) DEC 2010. Date was collected and empirical analysis made. To achieve these objective multiple regression was used in analyzing the data that the impact of interest rate on Nigeria prior to interest rate regulation in 1.986 and serve as guide to how interest rate can be fixed to enhance effective accumulation of savings that can channel to investment. Policy recommendation Government should in massively embarks on large-scale agriculture, manufacturing industrialization e.t.c and equally encourages small and medium scale enterprise (SMES). Public private partnership (ppp) should also be encouraged by government for efficient and effective production.

TABLE OF CONTENTS
Title page - - - - - -
Approval or Certification - - - - - -
Dedication - - - - - -Acknowledgement - - - - - -
Abstract - - - - - -
Table of Content - - - - - -

CHAPTER ONE
INTRODUCTION
1.1 Background of Study - - - - -
1.2 Statement of the Problem - - - - - -
1.3 Objective of Study - - - - - -
1.4 Statement of Hypothesis - - - - - -
1.5 Significance of Study - - - - -
1.6 Scope and Limitation - - - - -

CHAPTER TWO
THEORETICAL LITERATURE AND EMPIRICAL REVIEW
2.1 Interest Rate Volatility and Investment - - - -
2.1.2 Interest Rate and Corporate Finance - - -
2.1.3 Volatility Impact on Market Returns - - -
2.1.4 Market Performance and Volatility - - -
2.1.5 Factor that Affect Volatility - - - -
2.1.6 The Cyclical Volatility of Interest Rate - - - -
2.1.7 Why does Interest Rate Volatility - - - -
2.1.8 Interest Rates, Bond Price and Structure - - -
2.1.9 Measuring the Volatility of Interest Rate
2.1.10 What Determines Interest Rate Volatility - - -
2.2 Empirical Literatures - - -
2.2.1 The Investment Function - - - -
2.2.1 The Investment Function - - - -
2.2.2 Monetary Policy in Nigeria - - - -
2.3 Limitation of Previous of Study - - - -

CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introductions - - - -
3.1 he Model Specification - - - -
3.1.1 Mathematical Specification Model - - - -
3.1.2 Econometric Specification of Model - - -
3.2.2 Method of Evaluation - - -
3.3 Justification of Model - - -
3.4 Data Require and Source - - - -
3.5 Econometric Software Packages - - - -

CHAPTER FOUR
REGRESSION RESULTS AND ANALYSIS
4.1 The Result Presentation - - - -
4.2 Evaluation of Result - - - -
4.3 Econometric Tests - - - -
4.4 Test for Heterscedasticity Test - - - -
4.5 Test for Multicollinearity - - - -

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary - - - -
5.2 Conclusions - - - -
5.3 Recommendations - - - -
Bibliography
Appendix