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ABSTRACT
A liberalized economy attrracts both local and foreign investors, whereas a regulatted fiancial system may be repressive, thus discouraging investment. It is on the premise,this study examined the impact of fiancial liberalization and fiancial repression on econmic growth in Nigeria, using ratio of market capitalization, ratio of credit to private sector, ratio of foreign direct investment (fiancial fiancial liberalization indicators) as well as change in exchange rate, change in money supply and interest rate (financial repression indicators) on the Nigerian economy from 1981 to 2021 were investigated. The longitudinal research design was adopted to determine the effect of fiancial liberalization and repression on economic growth. Descriptive statistics, correlation and unit root tests constitute the preliminary investigation of the study. The Generalized mentod of Moments regression was utilized to examine the impact of fiancial liberalization and fiancial repression on econmic growth in Nigeria. The findings of this study revealed ratios of market capitalization and credit to private sector negatively and significantly impact economic output, while the ratio of foreign direct investment significantly and positively promotes economic growth in Nigeria. Also, change in money supply and interest rate positively and significantly impact economic growth, while changes in exchange rate negatively but significantly affect economic growth. Therefore, this study concludes that financial liberalization and financial repression significantly impact economic growth in Nigeria, and recommends among others that the monetary authority should intensify its regulatory activities but exercise caution on the use of some regulatory instruments because they constitute financial repression adversely affecting national economy, also developing countries should pursue jointly financial liberalization and selective regulation because of the combined effect on economic growth.
