Globalization and Industrial Development in Nigeria: A Curse or Cure?
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Date
2021
Authors
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Publisher
Oradea Journal of Business and Economics
Abstract
The question whether globalization and its corresponding impacts carry a blessing
or curse in developing countries has been a controversial issue among both the scholars
and the policymakers, against this background this study provided an empirical answer to
the question whether globalisation is a curse or cure to industrial development in Nigeria
between 1990 and 2019 within the framework of the Fully Modified Ordinary Least Squares
(FMOLS) and Granger causality test. Consequently, the following principal findings emerged
in this study. Firstly, both FDI inflows and trade openness which depict economic
globalization had a negative relationship with industrial development respectively. Though,
trade openness was significant while FDI inflows showed otherwise. In the same vein, a
unidirectional causality ran from manufacturing value added to FDI inflows. However, no
feedback relationship existed between trade openness and manufacturing value added.
Therefore, this study submits that economic globalization is a curse to industrial
development in Nigeria because the wave of economic globalization contributed a significant
reduction in manufacturing value added in Nigeria in the last three decades. From these
findings, the current wave of economic globalization could be a cure to industrial
development in Nigeria, if only the policymakers in the country embark on policies that would
drive the largest proportion of the inflows of FDI in the direction of manufacturing sub sector
in the country. Similarly, all hands must be on deck by all the relevant stakeholders to ensure
that manufactured products in Nigeria possesses value added quality to facilitate their
competitiveness in the global market.
Description
Keywords
Globalization, Trade Openness, Industrial Development, FDI, Curse, Cure
Citation
Omoyele, O.S., Lucas, B.O,m Olanipekun, W.D. and Aderemi, T.A., 2021. . Oradea Journal of Business and Economics, 6(2), pp. 88-97. http://doi.org/10.47535/1991ojbe132