International Journal of Advanced Research and Development

International Journal of Advanced Research and Development


International Journal of Advanced Research and Development
International Journal of Advanced Research and Development
Vol. 4, Issue 1 (2019)

Globalization and economic development in Nigeria


Kenneth U Onye, James Akpan, Matthew Kolly Alliu

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.
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How to cite this article:
Kenneth U Onye, James Akpan, Matthew Kolly Alliu. Globalization and economic development in Nigeria. International Journal of Advanced Research and Development, Volume 4, Issue 1, 2019, Pages 28-35
International Journal of Advanced Research and Development International Journal of Advanced Research and Development