OLANIRAN-AKINYELE, O.F and ADAMU, A.M (2017) THE IMPACT OF FINANCIAL DEEPENING ON ECONOMIC RECESSION IN NIGERIA. In: THE 11TH ANNUAL CONFERENCE OF THE SCHOOL OF MANAGEMENT STUDIES, 28TH – 30TH NOVEMBER, 2017., THE FEDERAL POLYTECHNIC, ILARO, OGUN STATE..
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Abstract
The role of financial services and financial deepening cannot be under-emphasised in growth and development of an economy and therefore as a veritable tool in bringing an economy out of recession. However, economists differ in their positions regarding this. The financial repression argument presented by McKinnon and Shaw was used to show how restriction of banks’ activities, interest rates, reserve requirement and credit direction could plunge an economy into recession and if not effectively addressed, may eventually result into depression. The study adopts a time series analysis of selected data set and conducts unit root tests on the data set to avoid spurious result, auto-regressive distributed lag models were constructed and the least square estimation technique was employed in determining the coefficients of the parameter estimates using the E-views statistical package. The evidence indicates that there is a strong positive relationship between financial deepening and economic growth, that high rates of inflation and high levels of money stock could plunge an economy into recession and recommends that government should continue to strengthen the financial system and build the public confidence in the system and seek to address continuous increase in price levels as well as discourage wide interest rate spreads.
| Item Type: | Conference or Workshop Item (Paper) |
|---|---|
| Subjects: | H Social Sciences > H Social Sciences (General) H Social Sciences > HF Commerce H Social Sciences > HG Finance |
| Divisions: | Faculty of Law, Arts and Social Sciences > School of Management |
| Depositing User: | Miss Ayomikun Ogunbadejo |
| Date Deposited: | 23 Jun 2020 12:12 |
| Last Modified: | 23 Jun 2020 12:12 |
| URI: | http://eprints.federalpolyilaro.edu.ng/id/eprint/656 |
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