Globalization and Economic Growth in Nigeria

Abstract

The study examined globalization and economic growth in Nigeria from 1985 to 2021. The objectives of the study are to; determine the impact of financial openness on economic growth in Nigeria; examine the effect of the net exports on economic growth in Nigeria; and examine the impact of exchange rate on economic growth in Nigeria. Annual data was collected from Central Bank of Nigeria statistical bulletins and World Development Index. The technique of Autoregressive Distributed Lag (ARDL) model was used to analyze the data. The empirical results showed that in the long run, all the variables of globalization have positive and significant relationship with economic growth in Nigeria during the period of study. In the short run, both financial openness and exchange rate have positive relationship with economic growth in Nigeria. But net exports have negative impact on economic growth in Nigeria. Based on these findings, it was concluded that, to a great extent economic globalization significantly accelerate economic growth in the longrun in the Nigerian economy. Based on these findings, it was recommended that, there should be creation of conducive environment to encourage openness of trade through inflow of investment that will trigger economic growth. Similarly, depreciation of the exchange rate which is an indicator of global price could be an obvious instrument that helps to drive the growth process in the Nigerian economy.