Impact of Globalisation on Economic Growth in Nigeria

Impact of Globalisation on Economic Growth in Nigeria.

ABSTRACT

The impact of globalization on the economic growth of Nigeria was examined. The study employed OLS estimation techniques of time series data for a period of 30 years (1985 to 2015).

The study revealed that Globalization and Foreign Direct Investment have a positive and significant impact on Gross Domestic Product of Nigeria.

The study further showed that the Exchange Rate (EXR) has a positive and insignificant effect on the economic growth of Nigeria during the period of study.

The study recommended that strategic macroeconomic policies should be instituted in order to encourage Foreign Direct Investment from abroad because of its significant capacity to enhance the growth of the Nigerian economic growth.

INTRODUCTION

1.1 Background to the Study

Globalization has posed to remain one of the most controversial topics of our time. Some observers and theories of globalization have variously argued that the rapid increase in cross-border economics, social, technological and cultural exchanges is either criticizing, destructive or feeble (Adeboye, 2012).

Globalization involves the opening up of national economies to global markets (Rupali, 2008).

Following the advent of globalization, the world has become a much smaller place where interaction between different countries has led to a situation where a country’s economy and development are not only in the hands of the ruling government but is highly influenced by international organizations where international rules and legislations reigns (Agugua, 2012).

This naturally and simultaneously results in the simultaneous reduction in the role of the State to shape national policies.

Many Socialists define globalization as a primarily economic phenomenon, which involves increasing interaction and integration of national economic systems. This leads in turn to growth in international trade, investment and capital flows (Adeolu, 2007).

Moreover, there is a rapid increase in cross-border social, cultural and technological exchanges because of the phenomenon of globalization. Globalization affects virtually all industries of which the banking industry is not an exception.

REFERENCES

Ayjodele, A.I and G Falokun (2003); the Nigerian Economy; Structure and pattern of development Jodad publishers.

Azoro – Osuji, C.O (2009); The practitioner’s handbook Uzo pictographic, Owerri, Imo State.

Eastly. W. (2010); The Elusive quest for growth” Economist adventures and misadventures in the Tropics. MIT press.

Encyclopedia Archives (2002), “Definition of globalization” www. Infed. Org / biblro / defining globalization interim. 25K

Fisher, Stanley S. (1999) “The financial crises in emerging markets, some lessons” Economic strategy institute conference, Washington Dc (82) 28 April.

Harvey, M and Novieve, M (2002), The concept and prospect of globalization, Kano, George publisher Ltd.

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