Globalization And Economic Growth in Nigeria: A Cointegration Approach

Abstract

The broad objective of the study is to assess empirically, the relationship between major globalization indicators and economic growth in Nigeria. The paper covered the period between 1980 and 2015. The cointegration and Error correction mechanism were adopted. The result showed that current FDI and one period lagged FDI, one period lagged exchange rate, current Balance of Payment and two period lagged openness of the economy to the outside world have a positive and significant impact on the level of economic growth in Nigeria. The ECM shows a satisfactory speed of adjustment. The Johansson cointegration test indicates a long run equilibrium relationship among the variables. The result recommends policy to expand FDI and an increase in the level of trade liberalization