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Rivers State University, Port Harcourt.
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| Title: | Impact of Macroeconomics Determinants on Consumption Behaviour in Nigeria Economy |
| Author(s): | Udofia M. V, Momodu A. A & Amadi C. R. |
| Abstract: | This study investigates the determinants of consumption behaviour in Nigeria economy. The techniques for data analysis used for study include descriptive statistics, unit root and co-integration tests as well as autoregressive distributive large (ARDL) model estimation method. The unit roots test results showed that the variables are fractionally integrated. The bounds configuration test result was carried out which showed that a long- run relationship exists among the variables in each of the two models. The long-run results showed that per- capital income has a positive effect on consumption. There was evidence of positive influence of interest rate on consumption in the long-run. Inflation rate has a negative and significant effect on consumption in the long run. Consequently, consumption decreased inflation, the results showed that per-capital income has a negative and significant effect on the long-run. Owing to the findings, this study recommends that employers of labour should endeavour to increase the workers‘ wages and salaries periodically in line with the changes in the country consumption expenditure. Policies which reduce tax burden should also be formulated to enhance consumers purchasing power to boost consumption behaviours. Also, Nigerian governments should make efforts to provide infrastructures, security and enable environment for business to strive, as good performance of business in the country will improve the return on investment and significantly impact positively on consumption. |
| Keywords: | Consumption, Per-capital income, Interest rate, Inflation, Nigeria economy. |
| Journal: | Journal of Contemporary Research in Economics and Development Studies Vol 2 No 1 |
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