Globalization and Economic Development Nexus in Nigeria

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

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

GlobalizationEconomic DevelopmentARDLNigeria

References

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Globalization and Economic Development Nexus in Nigeria

Abstract

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