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in Nigeria
An MSc Proposal
By
Ugwunweze, Ifeoma V.
PG/MSc/13/65442
The low level of savings in the 21st century made the gap
between savings and investment much pronounced.
40
35
30
25
20
15
10
50.00
40.00
30.00
20.00
10.00
0.00
-10.00
Value addition
This study will fill the gap by showing the relationship between oil
price fluctuations and the drivers of economic growth in terms of
savings and investment.
Fusing equation 3.4 into equation 3.3 shows that savings is a function
of fluctuations in oil price and oil price at level.
Model Specification
Oil price fluctuations (OPF) will be generated using a well
specified GARCH (1,1) model as specified by Bollerslev (1986).
This is shown below.
𝑦𝑡 = 𝑦𝑡 ′𝛽 + 𝜀𝑡 3.5
𝜀𝑡 ≈ 𝑖𝑖𝑑 𝑁 0, ℎ𝑡 3.6
2
ℎ𝑡 = 𝜔 + 𝛼1 𝜀𝑡−1 + 𝛽1 ℎ𝑡−1 3.7
Estimation Procedure
Before estimating the multiple equation models of equation
3.8, 3.9 and 3.11, spurious regression will be avoided by
conducting a unit root test. This test will follow the Augmented
Dickey-Fuller (ADF) unit root testing procedure.
Justification of the Model
The classical linear regression model (CLRM) as to be used
in this study within the ordinary least square (OLS)
estimation technique, possesses the BLUE property (Best
Linear Unbiased Estimator).
Diagnostic Tests
To ensure that the assumptions of the CLRM are not
violated, the study will conduct a serial correlation test,
Ramsey RESET test, normality test and heteroskedasticity
test.