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


  • Mete FERIDUN


  • Janet O. OLUSI
  • Benjamin Ayodele FOLORUNSO


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

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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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.


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