IDEAS home Printed from https://ideas.repec.org/a/eaa/aeinde/v6y2006i3_14.html
   My bibliography  Save this article

Analyzing The Impact Of Globalization On Economic Development In Developing Economies: An Application Of Error Correction Modelling (Ecm)To Nigeria

Author

Listed:
  • Mete FERIDUN
  • Janet O. OLUSI
  • Benjamin Ayodele FOLORUNSO

Abstract

The paper examined the effect of globalization of economic growth in Nigeria. The period of analysis was between 1986 and 2003 while the analytical method employed was econometric techniques of Error Correction Modelling (ECM). The result indicated that both measures of economic integration (trade openness and financial integration) and all other orthodox determinants of economic growth such as private investment, public investment and debt series were non stationary. They were indeed I(1) series. The paper also confirmed that trade openness had significant positive effect on economic growth in Nigeria. The impact of financial integration on the economy is, however, negative but insignificant at 10 per cent level of significance. The paper concluded that Nigeria could benefit more from globalization if its economy would fully integrate with the rest of the world. The paper therefore suggested the removal of all barriers to trade and movement of capital.

Suggested Citation

  • Mete FERIDUN & Janet O. OLUSI & Benjamin Ayodele FOLORUNSO, 2006. "Analyzing The Impact Of Globalization On Economic Development In Developing Economies: An Application Of Error Correction Modelling (Ecm)To Nigeria," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 6(3).
    • Handle: RePEc:eaa:aeinde:v:6:y:2006:i:3_14
    as

    Download full text from publisher

    File URL: http://www.usc.es/economet/reviews/aeid6314.pdf
    Download Restriction: No.
    ---><---

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Handy Williamson, 2001. "Globalization and Poverty: Lessons from the Theory and Practice of Food Security: Discussion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 730-732.
    3. Barro, Robert J. & Lee, Jong-Wha, 1993. "International comparisons of educational attainment," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 363-394, December.
    4. Peter H. Lindert & Jeffrey G. Williamson, 2003. "Does Globalization Make the World More Unequal?," NBER Chapters, in: Globalization in Historical Perspective, pages 227-276, National Bureau of Economic Research, Inc.
    5. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    6. Darryl Holden & Roger Perman, 1994. "Unit Roots and Cointegration for the Economist," Palgrave Macmillan Books, in: B. Bhaskara Rao (ed.), Cointegration, chapter 3, pages 47-112, Palgrave Macmillan.
    7. Angus Deaton, 1999. "Commodity Prices and Growth in Africa," Journal of Economic Perspectives, American Economic Association, vol. 13(3), pages 23-40, Summer.
    8. Ritva Reinikka & Paul Collier, 2001. "Uganda's Recovery : The Role of Farms, Firms, and Government," World Bank Publications - Books, The World Bank Group, number 13850, December.
    9. John Luke Gallup & Jeffrey D. Sachs & Andrew Mellinger, 1999. "Geography and Economic Development," CID Working Papers 1, Center for International Development at Harvard University.
    10. Levine, Ross & Renelt, David, 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions," American Economic Review, American Economic Association, vol. 82(4), pages 942-963, September.
    11. Anthony Venables, 2001. "Geography and International Inequalities: The Impact of New Technologies," Journal of Industry, Competition and Trade, Springer, vol. 1(2), pages 135-159, June.
    12. Dave Weatherspoon & Joyce Cacho & Ralph Christy, 2004. "Linking Globalization, Economic Growth and Poverty: Impacts of Agribusiness Strategies on Sub-Saharan Africa," World Scientific Book Chapters, in: Ralph D Christy (ed.), Achieving Sustainable Communities In A Global Economy Alternative Private Strategies and Public Policies, chapter 2, pages 27-42, World Scientific Publishing Co. Pte. Ltd..
    13. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    14. World Bank, 2001. "Global Economic Prospects and the Developing Countries 2001," World Bank Publications - Books, The World Bank Group, number 14779, December.
    15. Francisco Rodríguez & Dani Rodrik, 2001. "Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence," NBER Chapters, in: NBER Macroeconomics Annual 2000, Volume 15, pages 261-338, National Bureau of Economic Research, Inc.
    16. Gallup, J.L. & Sachs, J.D. & Mullinger, A., 1999. "Geography and Economic Development," Papers 1, Chicago - Graduate School of Business.
    17. Dani Rodrik, 1992. "The Limits of Trade Policy Reform in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 87-105, Winter.
    18. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 83-116.
    19. Ogujiuba Kanayo & Oji Okechukwu & Adeniyi Adenuga, 2004. "Is “Trade” Openness Valid for Nigeria’s Long-Run Growth: A Cointegration Approach?," International Trade 0412009, University Library of Munich, Germany.
    20. Robert E. Baldwin, 2000. "Trade and Growth: Still Disagreement about the Relationships," OECD Economics Department Working Papers 264, OECD Publishing.
    21. Carlton G. Davis & Clive Y. Thomas & William A. Amponsah, 2001. "Globalization and Poverty: Lessons from the Theory and Practice of Food Security," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 714-721.
    22. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Governance matters," Policy Research Working Paper Series 2196, The World Bank.
    23. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    24. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    25. Padma Desai (ed.), 1997. "Going Global: Transition from Plan to Market in the World Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262041618, December.
    26. Agenor, Pierre-Richard, 2002. "Does globalization hurt the poor?," Policy Research Working Paper Series 2922, The World Bank.
    27. Gallup, John L. & Sachs, Jeffrey D. & Mellinger, Andrew, "undated". "Geography and Economic Development," Instructional Stata datasets for econometrics geodata, Boston College Department of Economics.
    28. Alberto F. Ades & Edward L. Glaeser, 1999. "Evidence on Growth, Increasing Returns, and the Extent of the Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 1025-1045.
    29. Gallup, John & Sachs, Jeffrey, 1999. "Geography and Economic Development," Harvard Institute for International Development (HIID) Papers 294434, Harvard University, Kennedy School of Government.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oladunjoye, Opeyemi Nathaniel & Areyemi, Victor Olaife, 2021. "Tourism, Globalization and Economic Growth in Nigeria," African Journal of Economic Review, African Journal of Economic Review, vol. 9(2), April.
    2. gebregergis, Cherkos Meaza, 2017. "An Assessment of the Economic Impact of Globalization In Ethiopia: A Co-Integration Analysis," MPRA Paper 83533, University Library of Munich, Germany.
    3. Kolawole Opeyemi Olawole, Temidayo Oyeyemi Adebayo, Opeoluwa Samuel Idowu, 2018. "Openness, Government Size and Economic Growth in Nigeria," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 3(1), pages 71-84, March.
    4. Ozoemena Stanley Nwodo & Fredrick Onyebuchi Asogwa, 2017. "Global Integration, Non-Oil Export and Economic Growth in Nigeria," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 3(1), pages 59-67, March.
    5. Farid Ullah & Abdur Rauf & Nasir Rasool, 2014. "Analyzing the Impact of Globalization on Economic Growth," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 10(2), pages 87-99, April.
    6. Qingjie Liu & Biliang Hu, 2019. "A Study on the Two-way Causal Relationship Between Industrial Structure Evolution and Economic Growth: Empirical Test Based on 40 Years of Reform and Opening-up in China," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 11(1-2), pages 98-118, January.
    7. Olufemi Samuel Omoyele & Ojo B. Lucas & Wahid Damilola Olanipekun & Timothy Ayomitunde Aderemi, 2021. "Globalization And Industrial Development In Nigeria: A Curse Or Cure?," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 6(2), pages 88-97, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. James Feyrer, 2019. "Trade and Income—Exploiting Time Series in Geography," American Economic Journal: Applied Economics, American Economic Association, vol. 11(4), pages 1-35, October.
    2. Stimpfle, Alexander & Stadelmann, David, 2015. "The Impact of Fundamental Development Factors on Different Income Groups: International Evidence," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113128, Verein für Socialpolitik / German Economic Association.
    3. Malik, Adeel & Temple, Jonathan R.W., 2009. "The geography of output volatility," Journal of Development Economics, Elsevier, vol. 90(2), pages 163-178, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eaa:aeinde:v:6:y:2006:i:3_14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: M. Carmen Guisan (email available below). General contact details of provider: http://www.usc.es/economet/eaa.htm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.