IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 8 NO. 2 2022

---

Globalization and Economic Development Nexus in Nigeria

Odey, Ferdinand Ite, PhD. Onwuneme, Lovina N. Ebiefie, Victor Edet

---

Abstract

This study seeks to investigate the impact of globalization on economic development in Nigeria. The study employed annual time series data sourced from the Central Bank of Nigeria, World Development Indicators and Swiss Institute of Technology. Economic globalization was represented by globalization index while economic development was proxy by per capita GDP. Autoregressive Distributive Lag (ARDL) estimation technique was used to establish the long run relationship among the variables, while granger causality was used to establish the direction of causality. It was revealed that long run relationship exist among the variables in the estimated model. The granger causality results showed a unidirectional causality between globalization and economic development. The bound test results showed that a long run relationship exists among the variables in the estimated equation. This signifies the relevance of these variables in promoting economic development in Nigeria. The study recommends that; government should endeavor to maintain a stable and favorable macroeconomic policy that will drive domestic investment in the economy and which will make doing business in Nigeria a success towards a more vibrant economy that can compete favourably in the international arena. Effort should equally be made by government to encourage the inflow of foreign direct investment into the country. The monetary authorities should aim at maintaining a single digit inflation rate through the use of appropriate monetary policy tools as well as utilize industrial capacity in order to enhance foreign exchange inflow into the manufacturing sector of the Nigerian economy

keywords:

Globalization, Economic Development, ARDL, Nigeria

---

References:

Adesoye, A. A., Ajike, E. O. & Maku, O. E. (2015). Economic globalization and economic
growth in the developing economies: a case of Nigerian economy. International
Journal of Economics, Commerce and Management, 3(7), 340-355.

Baker, M. J. (1996). Marketing: An introductory text (6th ed.) Macmillan Press Ltd.,
London.

Baldwin, R. E, & Forslid, R. (2000). Trade liberalization and endogenous growth: A q
Theoretical approach. Journal of International Economics, 50, 497-517.

Bhandari, A. K, & Heshmati, A. (2005). Measurement of globalization and its
variations among countries, regions and over time. IZA Discussion Paper
No.1578

CBN (2012): Central Bank of Nigeria Statistical Bulletin and Annual Report and
Statement of Account.

CBN (2015): Central Bank of Nigeria Statistical Bulletin and Annual Report and
Statement of Account.

CBN (2020): Central Bank of Nigeria Statistical Bulletin and Annual Report and
Statement of Account.

Dappa, T. G & Thom-otuya, B. (2010). The effects of globalization on developing
economies: The Nigerian experience. Sophia: An African Journal of Philosophy, 12
(2), 1-10.

Feridun, M., Olusi, J. O. & Folorunso, B. A. (2006). Analyzing the impact of globalization
on economic development in developing economies: An application of
error correction modelling to Nigeria. Applied Econometrics and International
Development, 6 (3), 174-182.

Idoko C. U. & Abu, S. I. (2020). Globalization and Economic Development in Nigeria.
Sumerianz Journal of Economics and Finance, 2020, 10(10),1-5.

Imandojemu, K., Akinlosotu N. T. & Aina, J. B. (2021). Globalization and economic
growth in Nigeria. International Journal of Economics, Commerce and Management, 9
(1)1, 185- 203.

Maduka, A. C., Madichie, C. V., & Eze, E. A (2017). Globalization and economic growth:
Evidence from Nigeria. International Journal of Social Science and Economic
Research, 02(08), 4177-4191.

Mohan, A. (2009). The effects of economic globalization on developing countries. Demand
Media.

Nwakanma, P. C. & Ibe, R. C. (2014). Globalization and economic growth: An econometric
dimension drawing evidence from Nigeria. International Review of Management and
Business Research, 3(2), 771-778

Onwuka, E. C. & Eguavoen, A. (2007). Globalization and economic development: The
Nigerian experience. Journal of Social Science, 14(1), 45-51.

Onwuka, E. C. & Eguavoen, A. (2007). Globalization and economic development: The
Nigerian experience. Journal of Social Science, 14(1), 45-51.

Oti, P. A. & Odey, F. I. (2017). Analysis of Internally Generated Revenue and Capital
Expenditure Utilization in Cross River State, Nigeria. International Journal of
Development and Economic Sustainability, 6 (1), 9-18.

Oti, P. A., Odigbo, B. E. & Odey, F. I. (2016). Nigeria’s Debt Burden and Development
Tangle: The Socio-Economic and Political Implications. Journal of Economics
and Sustainable Development, 7(20), 92-101.

Perron, P., (1997), Further Evidence on Breaking Trend Functions in Macroeconomic Variables.
Journal of Econometrics 80(2), 335-385.

Ricardo, D. (1817). Principles of political economy, in Saffra, P. (Ed.) (1951), The Works and
Correspondence of David Ricardo, Cambridge University Press, London.

Smith, A. (1776), An Inquiry into the nature and causes of the wealth of nations, (ed.) E. Cannan
(1961) and reprinted by Methuen, London.
Swiss Institute of Technology database (2021).

Umo, J. U. (2007). Gains from international trade in economics: An African perspective, Second
Edition.

Utuk, I. O. (2015). Globalization and economic growth: The Nigerian experience. Journal
of Law, Policy and Globalization, 36, 18-28.

Yusuf, A. R. (2003). Globalization and Nigerian economic development. A paper presented
at the 4th Annual National Conference of the Social Studies Association of Nigeria,
Faculty of Education, University of Ibadan.

DOWNLOAD PDF

---

Back