Effect of Pension Contributory Funds on Economic Development in Nigeria | Asian Journal of Economics

Using time series data from 2004 to 2019, this study examined the effect of pension contributory funds on economic growth in Nigeria. The long-run Cointegration, Parsimonious short-run response, and Granger Causality were all investigated using the Error Correction Model (ECM). The results of the cointegration technique revealed a long-term connection between pension contributory funds and economic growth (per capita income). In the ECM short run results, the analysis also found that both private and public sector pension growth rates affected per capita income growth in Nigeria at a minimal level.According to the Granger causality findings, pension contributory funds flow from the public sector and support the private sector's growth rate in the Nigerian economy. According to the report, pension administrators should continually inform workers in both the private and public sectors about the scheme's benefits, as well as imbibe the culture of investing employee contributions for short-term returns. Finally, employers should provide financial and investment education to workers in order to train their minds for a life beyond active military service.

Please see the link :- https://globalpresshub.com/index.php/AJEFM/article/view/991