IMPACT OF GLOBALIZATION ON ECONOMIC GROWTH IN NIGERIA (1986-2019)

Abstract

This study examines the impact of globalization on economic growth in Nigeria for the study periods, 1986 to 2019. Unlike previous studies, this study measures globalization from three strands, economic globalization, political globalization and social globalization. The relevant variables in these models were sourced from secondary data such as Central Bank of Nigeria Statistical Bulletin and the KOF Globalization index. In achieving the objectives of this study, four research questions and hypotheses were formulated and both descriptive statistics and annual time series econometric methodology was employed. The results revealed that that political and social globalization has a positive but insignificant impact on real economic growth, while economic globalization has a negative and also insignificant impact on real economic growth in the long run over the study period in Nigeria. Further, the study found that only social globalization has a high positive and significant impact on real economic growth in Nigeria over the study period 1986-2019 in the short run. In addition, the study revealed that a univariate causal relationship existed between real economic growth, economic globalization, political globalization, and social globalization within the study period 1986 to 2019 in Nigeria. Lastly, the study recommended that government should place more emphasis on social globalization than political and economic globalization, as well as provide a friendly macroeconomic environment to boost the strands of globalization in actualizing steady real economic growth within the study period of 1986 to 2019 in Nigeria.