IMPACT OF GLOBALIZATION ON ECONOMIC GROWTH IN NIGERIA (1986-2018)
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IMPACT OF GLOBALIZATION ON ECONOMIC GROWTH IN NIGERIA (1986-2018)
Chapter one
INTRODUCTION
1.1 Background for the Study
One of the aims of Nigerian policymakers has been to maintain economic stability and growth. The world is undergoing a massive, multidimensional shift.
This transformation is multifaceted, including technological, economic, social, cultural, political, and geopolitical aspects. International trade has traditionally been viewed as a growth engine for every economy, whether advanced or developing.
To address these challenges, successive Nigerian governments have implemented a variety of policy regimes, the majority of which are concerned with structural adjustments on external equilibrium, trade liberalisation, and trade policy.
These policies include the Economic Stabilisation Act and the Structural Adjustment Programme (SAP), which were launched in 1982 and 1985, respectively, to lay the groundwork for long-term growth.
There were also National Rolling Plans, the National Economic Empowerment and Development Strategy (NEEDS I) from 2004 to 2007, and the National Economic Empowerment and Development Strategy (NEEDS II) from 2007 to 2011. These policy changes were intended to improve Nigeria’s external sector.
The Central Bank of Nigeria (CBN) continued to play its historic role of achieving economic stability, low inflation, and long-term growth and development through trade policy initiatives.
The CBN implemented trade and exchange rate policies to balance the external sector, including the Export Incentive and Miscellaneous Provisions Decree of 1986, the Customs, Excise, and Tariff Consolidation Decree of 1988, a gradual liberalisation strategy, import prohibition, duty exemptions, and concessions. All of these policies were aimed at achieving specific objectives such as balance of payment viability and export promotion.
However, the CBN’s capacity to achieve her goals is primarily dependent on the efficiency of globalisation. Globalisation refers to the process of integrating a country into the global economy (Okpokpo, Helenian, and Osuyali 2014).
The core of globalisation is to drive the economy towards external emancipation, with an emphasis on market-oriented economic systems, export-led strategies, and economic stabilisation. Nigeria’s economy has been liberalised since 1986, in line with the globalisation trend.
Many scholars believe that in order to reap the benefits of globalisation for economic growth, the country exposes its economy to external aggressions and the negative effects of globalisation, whereas others advocate caution and a complete restructure and transformation of the economy in order to face contemporary global challenges.
However, it has also been argued that the consequences of globalisation have improved due to a variety of factors, including country and time specifics, a country’s trade protection pattern, the flexibility of its domestic market, and its ability to adapt to changes in the economic environment (Afzal, 2007; Obadan, 2008).
Thus, the purpose of this research is to investigate the influence of globalisation on economic growth in Nigeria from 1986 to 2018. A thorough understanding of these effects would be beneficial in the context of trade policy.
Statement of the Problem
Despite various trade policies, such as the Export Incentive and Miscellaneous Provisions Decree of 1986, the Customs, Excise, and Tariff Consolidation Decree of 1988, and import prohibition, macroeconomic challenges such as inflation and disequilibrium in external balances continued to threaten Nigeria’s economic growth.
The failure of trade policy to meet macroeconomic difficulties has been attributed to policy gaps. Furthermore, the early implementation of the trade liberalisation programme deprived the economy the opportunity to obtain the much-needed technological transfer.
In addition to the foregoing, it is difficult to determine which trade policy action is most successful in resolving macroeconomic fluctuations in Nigeria. Most previous studies appeared to be divided on this subject.
Thus, the purpose of this study is to conduct an empirical investigation into the impact of globalisation on Nigerian economic growth.
This study will focus on the following research questions:
What impact does globalisation have on Nigeria’s economic growth?
How does globalisation affect the amount of technical transfer in Nigeria?
1.4. Objectives of the Study
The overall goal of this study was to establish the extent to which globalisation has resulted in economic growth in Nigeria. To attain this overarching goal, the following specific objectives will be examined.
The purpose of this study is to look into how globalisation affects Nigerian economic growth.
To investigate the effect of globalisation on the level of technological transfer in Nigeria.
1.5 Research Hypotheses.
H0: Globalisation has no substantial effect on economic growth.
H0: Globalisation has no substantial effect on technology transfer.
1.6 Significance of the Study
This study will be extremely valuable to investors, the government, and scholars since it will provide policy suggestions to various Nigeria stakeholders for taking appropriate economic steps to promote rapid growth and industrialization.
It will add to the current literature on the subject by conducting empirical research into the influence of globalisation in the country’s economic growth and development. This study will be beneficial to:
Members of the academic community will find the study useful because it will serve as a foundation for future research and a reference tool for academic work.
Government: This study will inform the government about developments in the worldwide market. The development and implementation of policies based on these findings would ensure growth.
Investors: This study will also benefit investors, particularly those with a research interest, as it will drive their private investment selections.
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