Imperatives of Globalization on Growth of Emerging Economies : Evidence From Nigeria (1980-2013)

Abstract

Study investigates the impact of globalization on Nigeria’s economic growth. This study covers the periods between 1990 to 2013. Quantitative research methodology was adopted using Augmented Dickey- Fuller unit-root test, to test for stationarity of the variables. The result of the stationarity (unit root) test shows that, the variables were all stationary at first difference. Co-integration test was conducted; likelihood ratio (L. R) test indicates 3 co-integrated equations at 5% significance level. L.R was compared to the critical values at 5%. Findings show that, there were three co-integrating equations in the set of normalized co-integrating vectors. Result of study shows that, export, total trade, balanced of trade, foreign direct investment played major impact on Nigerian’s economic growth; import has no significant effect on the Nigeria economy. Based on research finding, study rejects the null hypothesis and concludes that, there is significant relationship between export, total trade, foreign direct investment, balance of trade and gross domestic product of Nigeria; import plays no significant impact on gross domestic product of Nigeria. Findings show that, there is strong relationship between globalization and gross domestic product. Study recommends that, Nigeria should implement strong macroeconomic and structural policies to be able to reap the gains of globalization. Again, government should diversify from mono-cultural dependency of oil production to agricultural production. This will help the country to achieve high export potentials, increase profitability resulting from economies of large scale production and location economies. Further studies on private foreign investment on economic growth of Nigeria is encouraged.

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Author Information
Kelechi Enyinna Ugwu, Federal University of Technology, Nigeria
Charles Odinaka Njoku, Federal University of Technology, Nigeria

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Posted by James Alexander Gordon

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