CRITICIZING THE EFFECT OF GLOBALIZATION ON THE ECONOMIC DEVELOPMENT OF NIGERIA

Abstract

Globalization has over the years been widely celebrated as one of the keys to economic growth and development. The international competitiveness resulting from the integration of the world into a global village has brought tremendous progress to the world economy. Regrettably, since the integration of the Nigerian economy into the global economy, the growth pattern of the economy has remained below expectation when compared with other countries of the world. This had in the recent time generated hearted debates among the Nigerian economic researchers on whether globalization is actually a key to economic growth. Thus, the study uses the contemporary econometric techniques of cointegration and error correction mechanism within the framework of the Pesaran et al. (2001) ARDL model to examine the impact of globalization on economic growth in Nigeria. Using annualized secondary time series data from 1970 to 2015, the study reveals that trade openness; financial integration and foreign direct investment have significant positive impact on economic growth in Nigeria. Thus, adequate mechanism should be put in place to ensure that globalization brings about the desired pace of economic growth.