Globalization and Economic Growth: Evidence from Nigerian Economy 1980 – 2017

Abstract

This study examined the effect of globalization on growth of Nigerian Economy from 1980 to 2017. The used secondary data sourced mainly from the Central Bank of Nigeria Statistical bulletin and the SWISS Economic Institute (KOF). A multiple regression model which has economy growth, proxy by real gross domestic product as the dependent variable and globalization disaggregated into overall globalization, economic globalization, social globalization, and political globalization as the independent variables was estimated using Engle-Granger (1979) Error correction model approach. The unit root test shows that all the variables are integrated of order 1(1), while the co-integration test result revealed that the variables are co-integrated. Estimates from the error correction models show that overall globalization had positive and significant effect on economic growth, while political globalization had positive, but insignificant impact on economic growth. It was therefore recommended that government should create conducive macro-economic environment and invest in critical infrastructure to position the economy for positive globalization effects.