Impact of Globalization on the Economic Growth in Nigeria (1987-2021)

Abstract This work examines the impact of globalization on the economic growth in Nigeria. Yearly data were used from 1987 to 2021. The Ordinary Least Squares technique of analysis (OLS) was used to analyze the data, and the yearly data were sourced from Word Development indicator (WDI) and Nigeria Bureau of Statistics. This research work considers the Gross Domestic Product of Nigeria as a measure of the economic growth and other variables like the Foreign Direct Investment, Import, Export, Trade Liberalization which is also used to measure globalization. Based on OLS approach, test was carried out on each dependent variable and the independent variable to check the long and short run regression findings for the coefficient of the lagged values of the dependent and independent variables. Some diagnostic test like the serial correlation test, heteroscedasticity test, and stability test were also carried out on the variables. From the results obtained, import of goods and trade liberalization was negatively and positively statistically significant respectively in explaining economic growth rate. Also FDI has a positive statistical relationship with the economic growth. It is therefore recommended that special attention should be given to export activities and foreign investment in Nigeria, such as increased budgetary allocation to encourage export in Nigeria and to ensure proper implementation of programs. Also, there should be effort of the government on reducing export duties so as to encourage citizens who are into exporting of goods and services, so as to inject more money into Nigerian economy.