The Nexus of Globalisation and Economic Development: The Nigeria Experience (original) (raw)
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Empirical Review of Globalization and Nigerian Economic Performance
European Journal of Business and Management, 2014
Globalization has increased the integration and interdependence of economies among one another. It has come to be seen as a panacea for improved economic growth. This is made possible by an integrated global market marked by improved technology, investment and competition. This study thus, examines the performance of Nigeria in the global economy. The study made use of five explanatory variables to test for the performance of the economy in the global market. Unit root test using the Augmented Dickey Fuller test was conducted to test for stationarity among variables employed. The Johansen Co-integration test was also employed to test for long run equilibrium relationship among the variables while the Granger Causality test was conducted so as to ascertain the causal relationship between variables. The ECM was also conducted. The paper concluded that globalization can stimulate the rise in economic growth of a country. Nigeria however has not benefitted enough from globalization owing to her over dependence on oil export as the major source of earning, thereby neglecting other potential sectors in the economy. The paper proffered diversification of the economy from crude oil, prudent government spending and conducive and enabling environment for both the growth of other important sectors and improved FDI as strategies to give Nigeria a stand in the competitive global market.
The Neoclassical proposition of improving the economic growth especially of growing economies has widely been refuted by most studies due to the latter's inability to utilize the opportunities of increased international trade. The study deviated from the common norm of studying the impact of globalization on economic growth to examining at the causality relationship between economic growth and globalization in Nigeria. Result of the study showed that the null hypothesis of globalization not granger causing economic growth should be accepted at 5% level. This in a way still confirms the negligent effect of globalization in the Nigerian economy and therefore calls for all necessary policy efforts at positioning the economy in a form that can make her maximize the advantages of globalization.
This study examines the impact of economic globalization on output growth of the Nigerian economy. Different econometrics techniques i.e. pre-estimation test, estimation techniques and diagnostic test such as Augment Dickey Fuller, Engel-Granger co-integration, Ordinary Least square, post estimation tests and Error Correction Model were carried out using the data sets within the period of 1970 and 2013. There exist a long-run relationship among exchange rate, interest rate, inflation rate, foreign direct investment (FDI), trade openness, and financial openness and real gross domestic product. The results revealed that a higher exchange rate and inflation rate, an increase in foreign direct investment, growth in trade and financial openness and a lesser interest rate enhance the growth rate of output in Nigeria. However, all the incorporated variables maintained their respective signs and significant level except FDI with a negative insignificant impact on output growth. In addition,...
Economic Globalization and Economic Growth in the Developing Economies: A Case of Nigerian Economy
2015
This study examines the impact of economic globalization on output growth of the Nigerian economy. Different econometrics techniques i.e. pre-estimation test, estimation techniques and diagnostic test such as Augment Dickey Fuller, Engel-Granger co-integration, Ordinary Least square, post estimation tests and Error Correction Model were carried out using the data sets within the period of 1970 and 2013. There exist a long-run relationship among exchange rate, interest rate, inflation rate, foreign direct investment (FDI), trade openness, and financial openness and real gross domestic product. The results revealed that a higher exchange rate and inflation rate, an increase in foreign direct investment, growth in trade and financial openness and a lesser interest rate enhance the growth rate of output in Nigeria. However, all the incorporated variables maintained their respective signs and significant level except FDI with a negative insignificant impact on output growth. In addition, 32.2% of the distortion in the shortrun is corrected in the first year in attainting equilibrium or sustainable economic growth. The government must ensure the development and enthronement of necessary institutions that will support both market system and democracy.
GLOBALIZATION AND ECONOMIC GROWTH: EVIDENCE FROM NIGERIA
Globalization has over the years been widely celebrated as one of the keys to economic growth and development. The international competitiveness resulting from the integration of the world into a global village has brought tremendous progress to the world economy. Regrettably, since the integration of the Nigerian economy into the global economy, the growth pattern of the economy has remained below expectation when compared with other countries of the world. This had in the recent time generated hearted debates among the Nigerian economic researchers on whether globalization is actually a key to economic growth. Thus, the study uses the contemporary econometric techniques of cointegration and error correction mechanism within the framework of the Pesaran et al. (2001) ARDL model to examine the impact of globalization on economic growth in Nigeria. Using annualized secondary time series data from 1970 to 2015, the study reveals that trade openness; financial integration and foreign direct investment have significant positive impact on economic growth in Nigeria. Thus, adequate mechanism should be put in place to ensure that globalization brings about the desired pace of economic growth.
Globalisation and economic growth: The case of Nigeria (1970-2013)
Drawing from the experience of Nigeria, this study presents an analytical link between globalisation and economic growth. The Ordinary Least Squares (OLS) estimation technique was adopted for the study. Focusing on the economic aspect, it is observed that globalisation is a phenomenon entailing the increasing integration of goods, labour and capital markets across the globe. These have been facilitated by the improvement in technology and application of liberal economic policies. While those countries that have applied appropriate economic policy measures have benefited from globalisation, those that have not, have been marginalised. Nigeria has not fared well not only because of inappropriate policies but also owing to the fact that the international environment presents unequal opportunities. In order to improve its lot, Nigeria must devise strategies for negotiating better terms at the multinational setting. In addition, basic internal conditions necessary for globalisation to be beneficial to the country, must as a matter of necessity, be enshrined first. This is without prejudice to the need to pursue policies that would enhance exports, raise productivity and improve the welfare of the citizens.
Globalization and Economic Growth in Nigeria: Any Nexus
The research work is on globalization and economic growth in Nigeria: Any nexus? The study adopts descriptive statistics, regression analysis and correlation analysis on the macro economic variables. The objectives of the study are to: describe the trend of macroeconomic variable; examine the impact of globalization on economic growth of Nigeria; to determine the relationship between foreign direct investment, inflation and exchange rate; relationship between trade openness and exchange rate, Inflation and dummy (structural change) variable; estimates the factors contributing significantly to the economic growth in Nigeria and to proffer policy recommendation on how globalization can further enhance the economic development of Nigeria.
Globalisation and Economic Growth: The Case of Nigeria (1970-2010)
Journal of Law, Policy and Globalization, 2013
Drawing from the experience of Nigeria, this study presents an analytical link between globalisation and economic growth. The Ordinary Least Squares (OLS) estimation technique was adopted for the study. Focusing on the economic aspect, it is observed that globalisation is a phenomenon entailing the increasing integration of goods, labour and capital markets across the globe. These have been facilitated by the improvement in technology and application of liberal economic policies. While those countries that have applied appropriate economic policy measures have benefited from globalisation, those that have not, have been marginalised. Nigeria has not fared well not only because of inappropriate policies but also owing to the fact that the international environment presents unequal opportunities. In order to improve its lot, Nigeria must devise strategies for negotiating better terms at the multinational setting. In addition, basic internal conditions necessary for globalisation to be...
Economic Globalisation and Economic Growth Dynamics in Nigeria
2020
Globalisation has been a topical issue both in the industrialized and developing nations of the world, this is not unconnected with the impacts it had on the attainment of macroeconomic objectives of these nations. This connotes that globalisation is crucial because it is typically affected by exogenous shocks such as political regime shifts, international conflicts or trade liberalization and unexpected changes to business condition. It is on this premise that the study examined the impact of globalisation on economic growth in Nigeria. This study adopted ex post facto research design. The data were obtained from the KOF globalisation index of Swiss economic institute and World development Indicator of World Bank for the period 1970-2017 for Nigeria representing a total of forty-eight observations. The documents were already exposed to the scrutiny of the appropriate regulatory agencies and the data were analyzed using descriptive and inferential statistics employing the time serie...
Globalization and the Industrial Development of Nigeria : Evidence from Time Series Analysis
2014
Among the biggest dilemmas developing countries fac e is whether they should open their economies up to the globalization process or adopt a cautious approach to avoid risks. There are fears that globalization would lead to environm e tally damaging production and consumption patterns, high labour unemployment rate s nd such other fears as loss of local control over domestic economic programmes, as well as de-industrialization. In this paper, we examined the nature of the influence globalization might have exerted on the industrial development of Nigeria over the past five decades ( 1960-2010). Based on the Engle-Granger two-step and Johansen Cointegration tests, the vect or auto regressions technique was used within an error correction framework. Findings cle arly showed that globalization had significant impacts on industrial development in Ni geria. Specifically, trade openness had a positive influence on industrial development. This suggested that increasing the level of trade w...