EMPIRICAL ANALYSIS OF PENSION FUND ASSET ON NIGERIA'S GROSS DOMESTIC PRODUCT(GDP)

Halimah Sani SAMBO

Abstract


Worldwide, analysts, researchers and academic play a focal point on pension fund asset not only on its ability to counterpoise individual retirement claims but also on the long run economic growth of the countries. The objective of this study is to empirically assess the impact of pension fund asset on Nigeria Gross Domestic Product (GDP). As such, pension fund asset have become an essential aspect of economic literature. However, the significance of pension fund asset on the total contribution to Nigerians GDP using annual data from2007 to 2017 has
not been empirically established. The study employed annual time series data for the pension fund asset within this period and the GDPt as its variables. Using Eveiws 8 to empirically run an Ordinary Least Square (OLS) regression to estimate the relationship for the variables it was found that pension funds asset has a positive effect on GDP of Nigeria, and thus a percentage increase in the ratio of pension fund asset will induce a 120.78% increase in Nigeria's GDP. The positive relationship advocates that pension assets have gradually become a significantpart of GDP in Nigeria financial system. Thus,the study recommends that PFAs should improve efficient management of the portfolio of pension
fund asset as itwould further provide a veritable source of capital for financing economic growth in Nigeria


Keywords


Gross Domestic Product, Nigeria, Pension fund asset

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International Journal of Management Science Research ISSN ISSN 2536 – 605X(Print)

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