ASSESSMENT OF THE IMPACT OF GLOBALIZATION ON ECONOMIC GROWTH IN NIGERIA (1988-2022)

Abstract

The idea that globalization is one of the most important drivers of economic growth has gained wide acceptance in recent times. The study empirically assesses the effects globalization on economic growth of Nigeria. Specifically, the study identifies how globalization affects the progress of the Nigeria economy.The study empirically investigates if there is a short-runand long run relationship between economic globalization and economic growth in Nigeria. The study examined the extent at which social and political globalization affect Nigeria economic growth.The study employed Autoregressive Distributed Lags (ARDL) models to examine the relationship between general globalization, economic globalization, social globalization, political globalization and economic growth in Nigeria. The study made use of annual data series dating from1988 to 2022 sourced from World Development Indicators (WDI), the database of World Bank and of Swiss Economic Institute data base. The study reveals that general globalization, economic globalization, social globalization and political globalization have a significant positive effect on economic growth in Nigeria.The study therefore recommends that, for Nigeria to catch high levels of growth levels, Nigeria should endeavor to improve on the institutional quality and good governance in Nigeria.When this is in place, further economic and social integration from foreign countries will be enhanced and economic development will be achieved. Also, Nigeria government should widen its market through either improved export of commodities and services as well as import of machines and production inputs.Further integration of the Nigerian economy with other economies through a productive capacity should be a focus of policy by the Nigerian government and policy markers.