Vol. 4, Issue 1 (2019)
Globalization and economic development in Nigeria
Author(s): Kenneth U Onye, James Akpan, Matthew Kolly Alliu
Abstract: This study provides an assessment of the impact of globalization on economic development in Nigeria from 1981 to 2016. It focuses particularly on how trade and financial globalization impacts on economic outcomes such as unemployment, inequality and poverty levels (represented by PPP-adjusted GDP per Capita). The Augmented Dickey-Fuller (ADF) test was conducted to determine the level of stationarity of the variables. Using Johansen Co-integration and Ordinary Least Square (OLS) regression technique, the study found that economic globalization has a positive impact on economic development in Nigeria. The effects from trade openness and foreign direct investment are positive and insignificant, meanwhile, it was also discovered that terms of trade shock has positive and significant impact on economic development. While gross fixed capital formation is found to promote development, rises in inflation is found to impede on economic wellbeing. The co-integration test found a long-run relationship between globalization and economic development in Nigeria. The study concludes that the effects from globalization can be improved by implementing appropriate policies and reforms towards improving the terms of trade indices of Nigeria.