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Globalization And Industrial Development In Nigeria: A Curse Or Cure?

Author

Listed:
  • Olufemi Samuel Omoyele

    (Department of Business Administration and Marketing, Redeemer’s University, Ede, Osun State, Nigeria)

  • Ojo B. Lucas

    (School of Technical Education, Yaba College of Technology, in Affiliation with University of Nigeria, UNN, Usukka, Nigeria)

  • Wahid Damilola Olanipekun

    (College of Management and Information Technology, American International University West Africa, Gambia)

  • Timothy Ayomitunde Aderemi

    (Department of Economics, Accounting and Finance, Bells University of Technology, Ota, Nigeria)

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.

Suggested Citation

  • 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.
    • Handle: RePEc:ora:jrojbe:v:6:y:2021:i:2:p:88-97
    DOI: http://doi.org/10.47535/1991ojbe132
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    References listed on IDEAS

    as
    1. Aderemi Timothy Ayomitunde & Ogunleye Akin George & Lucas B. Ojo & Okoh Johnson Ifeanyi, 2020. "Globalization and Economic Growth: Evidence from European Countries," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2020(1), pages 67-82.
    2. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    3. Ilemona Adofu & Innocent Okwanya, 2017. "Linkages between Trade Openness, Productivity and Industrialization in Nigeria: A Co-integration Test," Research in World Economy, Research in World Economy, Sciedu Press, vol. 8(2), pages 78-87, December.
    4. Nguyen, Canh Phuc & Le, Thai-Ha & Su, Thanh Dinh, 2020. "Economic policy uncertainty and credit growth: Evidence from a global sample," Research in International Business and Finance, Elsevier, vol. 51(C).
    5. Akhtiar Ali & Abdur Rahman Aleemi & Muhammad Tariq & Kanwal H.Lakhani, 2014. "Effects Of Foreign Direct Investment On Economic Growth: Empirical Evidence From Pakista," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 10(2), pages 149-159.
    6. 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).
    7. Akhtiar Ali & Abdur Rahman Aleemi & Muhammad Tariq & Kanwal H. Lakhani, 2014. "Effects Of Foreign Direct Investment On Economic Growth: Empirical Evidence From Pakista," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 10(2), pages 10-11.
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    More about this item

    Keywords

    Globalization; Industrial Development; Trade Openness; FDI; Curse; Cure;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

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