Empirical Review of Globalization and Nigerian Economic Performance

Abstract

Globalization has increased the integration and interdependence of economies among one another. It has come to be seen as a panacea for improved economic growth. This is made possible by an integrated global market marked by improved technology, investment and competition. This study thus, examines the performance of Nigeria in the global economy. The study made use of five explanatory variables to test for the performance of the economy in the global market. Unit root test using the Augmented Dickey Fuller test was conducted to test for stationarity among variables employed. The Johansen Co-integration test was also employed to test for long run equilibrium relationship among the variables while the Granger Causality test was conducted so as to ascertain the causal relationship between variables. The ECM was also conducted. The paper concluded that globalization can stimulate the rise in economic growth of a country. Nigeria however has not benefitted enough from globalization owing to her over dependence on oil export as the major source of earning, thereby neglecting other potential sectors in the economy. The paper proffered diversification of the economy from crude oil, prudent government spending and conducive and enabling environment for both the growth of other important sectors and improved FDI as strategies to give Nigeria a stand in the competitive global market.

Keywords: Globalization, Economic Integration, Degree of Openness, Convergence and Economic Growth.