Citation :

Peter Adamu, Mustapha Hussaini, "Globalization and Economic Development in Africa: The Case of Nigeria," International Journal of Economics and Management Studies, vol. 13, no. 6, pp. 21-29, 2026. Crossref, https://doi.org/10.14445/23939125/IJEMS-V13I6P103

Abstract

The paper examined the impacts of globalization on economic development in Africa with a specific reference to Nigeria for the period 1975 - 2021. Globalization gained momentum across the globe in the 1970s, and in Nigeria, its manifestations became more glaring during the 1980s, particularly with the adoption of the Structural Adjustment Programme (SAP) IN 1986. This justifies the start period of this study. The data for globalization were retrieved from the Swiss Economic Institute, and the data shows various categories of globalization, which are economic, cultural, informational, interpersonal, political, social and trade globalization. Four categories of globalization were selected and utilized for this study, which include: Economic, Social, Political and Trade globalization. The data for economic development was sourced from World Development Indicators as well as other control variables. The data were subjected to a unit root test, and the results show that all the variables are stationary at the first difference. An Autoregressive Distributed Lags (ARDL) was used to empirically examine the long-run relationship between dependent and independent variables. The ARDL bounds test results show the existence of long run relationship between the variables. The bounds test results specifically show that economic, social, trade and political globalization have a long-run relationship with economic development in Nigeria. However, the results for all four measures of globalization are not significant in explaining economic development for the period under study in the case of Nigeria, except for expenditure on capital, which is significant in the short run. The findings, therefore, reveal that despite the penetration of globalization across the globe since the 1970s, its impact in promoting socioeconomic development has not been significant. The findings suggest that the government should look inward by harnessing domestic potentials such as agriculture and solid minerals in its quest to develop the country.

Keywords

Globalization, Economic Development, Nigeria, Structural Adjustment Programme, Autoregressive Distributed Lags.

References

1. Peter Adamu et al., “Impact of Globalization on Unemployment in Subsaharan African (SSA) Countries,” Global Conference on Business and Economics Research (GCBER), University Putra Malaysia, Malaysia, pp. 302-310, 2017.
   [Google Scholar]
2. Rita Almeida, and Ana Margarida Fernandes, “Openness and Technological Innovations in Developing Countries: Evidence from Firm-Level Surveys,” The Journal of Development Studies, vol. 44, no. 5, 2008.
   [CrossRef] [Google Scholar] [Publisher Link]
3. Jude Eniola Baiyegunhi et al., “Impact of Technological Globalization on Unemployment Rate in Nigeria,” Journal of Arid Zone Economy, vol. 4, no. 4, pp. 93-104, 2024.
   [Google Scholar] [Publisher Link]
4. Richard Baldwin, Henrik Braconier, and Rikard Forslid, “Multinationals, Endogenous Growth, and Technological Spillovers: Theory and Evidence,” Review of International Economics, Wiley Blackwell, vol. 13, no. 5, pp. 945-963, 2005.
   [CrossRef] [Google Scholar] [Publisher Link]
5. Robert J. Barro, and Xavier Sala-i-Martin, “Technological Diffusion, Convergence, and Growth,” Journal of Economic Growth, vol. 2, pp. 1–26, 1997.
   [CrossRef] [Google Scholar] [Publisher Link]
6. David A. Dickey, and Wayne A. Fuller, “Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root,” Econometrica, vol. 49, no. 4, pp. 1057-1072, 1981.
   [CrossRef] [Google Scholar] [Publisher Link]
7. David Dollar, “Outward-Oriented Developing Countries Really do Grow More Rapidly: Evidence from 95 LDCs, 1976-85,” Economic Development and Cultural Change, vol. 40, no. 3, pp. 523-544, 1992.
   [CrossRef] [Google Scholar] [Publisher Link]
8. David Dollar, and Aart Kraay, “Trade, Growth, and Poverty,” The Economic Journal, vol. 114, no. 493, 2004, pp. F22–F49, 2004.
   [CrossRef] [Google Scholar] [Publisher Link]
9. Axel Dreher, Noel Gaston, and Pim Martens, Measuring Globalisation-Gauging its Consequences, 1^st ed., Springer New York, NY, pp. 25-74, 2008.
   [CrossRef] [Google Scholar] [Publisher Link]
10. Robert F. Engle, and C.W.J. Granger, “Co-Integration and Error Correction: Representation, Estimation, and Testing,” Econometrica, vol. 55, no. 2, pp. 251-276, 1987.
    [CrossRef] [Google Scholar] [Publisher Link]
11. Janet O. Olusi, and Benjamin Ayodele Folorunso, “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, vol. 6, no. 3, pp. 173-182, 2006.
    [Google Scholar] [Publisher Link]
12. M. Hashem Pesaran, and Yongcheol Shin, Richard J. Smith, “Bounds Testing Approaches to the Analysis of Level Relationships,” Journal of Applied Econometrics, vol. 16, no. 3, pp. 289-326, 2001.
    [CrossRef] [Google Scholar] [Publisher Link]
13. Dani Rodrik, “The Limits of Trade Policy Reform in Developing Countries,” Journal of Economic Perspectives, vol. 6, no. 1, pp. 87-105, 1992.
    [CrossRef] [Google Scholar] [Publisher Link]
14. Robert M. Solow, “A Contribution to the Theory of Economic Growth,” The Quarterly Journal of Economics, vol. 70, no. 1, pp. 65–94, 1956.
    [CrossRef] [Google Scholar] [Publisher Link]
15. T. W. Swan, “Economic Growth and Capital Accumulation,” Economic Record, vol. 32, no. 2, pp. 334-361, 1956.
    [CrossRef] [Google Scholar] [Publisher Link]
16. Wilfred Isioma Ukpere, and A.D. Slabbert, “The Correlation between Current Globalisation and Human Resources,” Indian Institute of Economics, vol. 49, no. 3, pp. 347- 358, 2007.
    [Google Scholar] [Publisher Link]
17. Trade and Development Report, 2015, UN Trade & Development (UNCTAD), 2016. [Online]. Availble: https://unctad.org/publication/trade-and-development-report-2015