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International Journal of
Humanities and Social Science Research
ARCHIVES
VOL. 2, ISSUE 2 (2016)
Globalization and Nigeria’s Economic Performance
Authors
Kenneth Onye U, Alex Iriabije O
Abstract
This paper investigates the part that globalization has played in the performance of selected key sectors of the Nigerian economy by relying on a tripartite error correction representation of the effects of globalization on manufacturing sector, agricultural sector and international trade. We incorporate a pre- and Post- economic globalization dummy in an Engle Granger two-step Error Correction Model (ECM). Our findings reveal that except for the agricultural sector, economic globalization (compared to none) has not contributed to an improvement in manufacturing output and Nigeria’s external balance position. Trade openness and net capital inflow have short term positive and insignificant effect on agricultural output (AGR); but the effect became negative and detrimental to agricultural production in the long term period. Contrastingly, foreign direct investment in agriculture has significantly contributed to an increase in agricultural production over the long term period. The error correction mechanism indicates dis-equilibrium in Nigeria’s external balance position that is divergent, oscillatory and explosive, implying a damaging effect of unfettered globalization on Nigeria’s external balance. It is, therefore, recommended that Nigeria should adopt selective globalization policies to improve its external balance position and raise production in its manufacturing and agricultural sectors.
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Pages:37-54
How to cite this article:
Kenneth Onye U, Alex Iriabije O "Globalization and Nigeria’s Economic Performance". International Journal of Humanities and Social Science Research, Vol 2, Issue 2, 2016, Pages 37-54
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