1.0 BACKGROUND TO THE STUDY
The world is facing the most severe financial crisis since the great depression of the last century. The current financial crisis is unprecedented in the history of the modern world and it is having a catastrophic effect on the financial wellbeing of millions of people around the world. The current crisis is rooted to the mortgage loan crisis, which became heightened in the United States in the early 2004 until mid 2007 when it escalated. During early 2004, the mortgage industry in the United States enjoyed an unprecedented boom whereby mortgage brokers enticed prospective buyers with inadequate income or poor credit history into taking mortgage loans with little or no down payment, Adamu. These subprime loans were later repackage and resold to banks and other financial institutions which then created collaterised debt obligations (CDO) and sold these financial instruments to world wide investors who unsuspectingly relied on the strength of the sellers rather than the risk rating of the underlying financial instruments.
1.5 RESEARCH QUESTIONS
- What are the major causes of the global financial crisis and the Nigerian economic recession?
- What are the strategies adopted by Nigerians …..
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1.6 RESEARCH HYPOTHESES
Ho1: There is no significance effect of global financial crisis on Nigerian economy
Ho2: There is no significance difference between global financial crisis on Nigerian economy
4.0 RESULT PRESENTATION AND DISCUSSION
This chapter is devoted to the explanation of the result of the analysis of the secondary data used for the study. The results are divided into two.
- Difference means
- Multiple regression analysis
Each of these discussed below
- Difference of means: this analysis was used to compare the average of selected macro economic variables and during the economic meltdown.
The variables are aggregate consumption, inflation rate and aggregate revenue.
4.2 DATA ANALYSIS
Hypothesis One: There is no significant effect of global financial crisis on Nigeria economy
Table 1: analysis of effect of global financial crisis on Nigerian economy
|R = 0.065, R2 = 0.004, Adjusted R2 = -0.011|
|Sum of squares||Df||Mean square||F||Sig. (p)||Remarks|
|Regression||398.226||1||132.742||0.278||0.04||Not significant (p>0.05)|
Table 1 above shows that Nigeria stock exchange transaction, Nigeria external services, Gross domestic product accounts for 0.4% of the total variance on causes of global financial crisis (r2 = 0.004, p>0.05). This percentage is significant at 0.05 level of confidence.
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