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McKinnon (1973) and Shaw (1973) argue that financial deepening increases the rate of domestic savings, and this lowers the cost of borrowing and thusstimulating investment. The core of this argument rests on the claim that developing countries suffer from financial repression. It posits therefore that the liberation of these countries from their repressive conditions would induce savings, investment and growth. In this view, investment is positively related to the real rate of interest, in contrast to, the neoclassical theory. The reason for this is that a rise in interest rate increases the volume of financial saving through the financial intermediaries and as such increases investible funds, a phenomenon that McKinnon (1973) calls the "conduit effect".

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Q: Could you explain McKinnon's conduit effect?
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What is the minimum size service cconduit for a 100 amp service?

If the service stack is supported by a support structure and the utility feed drop is not supported from the conduit, the size of the conduit can be 1 1/4". If the service stack is used to support the utility feed drop then the conduit has to be 2" schedule 40 conduit. The reasoning behind this is that if in a storm a tree limb falls across the service drop, the lighter weight conduit could bend and pinch the wires in the stack and short out. This would be ahead of the main service breaker and the only protection for the wire would be the primary fuse at the transformer. Theoretically this amperage could rise to 50000 amps before the primary fuse blows. A schedule 40 service stack if supported, as the code requires, will withstand most tree falls. What is most likely to happen is that the utility connectors will pull apart leaving the service stack intact.


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