The Impact of Financial Globalization on the Economic Growth of Developing Countries of Africa: The Example of Nigeria

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Date
2017
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International Journal of Innovative Studies in Sociology and Humanities
Abstract
From the perspectives of the Nigerian, financial globalization had not seriously received the right attention, but evidences abound that the concept had contributed greatly to the pace of economic and industrial revolution that now characterized our national agenda. This is exemplified in the Nigeria’s Vision 20:2020 and the Millennium Development Goals enforcement programmes. It is important that research work in this contemporary economic and political phenomenon be encouraged to introduce reforms and create peculiar agenda for peculiar economic environment, to allay obvious fears and risks, un-conducive for universal economic integration and to eradicate economic imperialism. The aim of this study is to determine the impact of financial globalization on global economic development, especially in low developed countries, using Nigeria as a case study. Therefore data for the financial globalization measured as balances in the foreign reserves as a share of Gross Domestic Products [GDP] for the period of 21 years was collected and analyzed with other variables such as interest rates, exchange rates, inflation rate and stock market valuation. Ordinary Linear Regression [OLR] analysis technique was engaged to express the relationship between these variables in a behavioural form, to provide estimation in form of the causal relationship between the dependent variables and independent variable. On the whole, the influences of all the dependent variables except Interest rate are considered highly significant on the value of GDP. The conclusion is to the effect that, the impact of financial globalization on any country’s economic development remains positive and crucial.
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Olanrewaju, D. A., & Adegbola, D. (2017). The impact of financial globalization on the Economic growth of developing countries of Africa: The example of Nigeria. International Journal of Innovative Studies in Sociology and Humanities, 2(10), 11-31.