Globalization and Monetary Growth: Scientific Evidence coming from Nigeria

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 Globalization and Economic Progress: Empirical Proof from Nigeria Essay

GLOBALIZATION AND ECONOMIC PROGRESS: EMPIRICAL DATA FROM NIGERIA

By

KELECHI IYOKO.

Fuzy

The concomitant unequal distribution from the benefits of Globalisation and the dread expressed simply by most developing countries about the adverse impact of globalization, has turned the question around the relationship between globalization (characterized by overseas direct expenditure, economy visibility and net capital flows) and Economical Growth at developed and developing countries lie at the heart of arguments on monetary development insurance plan. This paper investigates the causal romance between the positive effect (characterized by simply FDI and Openness) and Economic Growth using co-integration techniques on time series info in Nigeria. The result of the research shows a unidirectional causality between FDI and Progress with FDI Granger causing growth while there was no causality between Visibility and Development. Rather, visibility Granger causes external debts in Nigeria. The study urged that the nation should drink, slurp some of the drew contours associated with an appropriate development strategies for producing economies consisting of debt lowering, domestic financial discipline, powerful exchange level policy plus the diversification from the domestic bottom. Keywords: The positive effect, Economic Expansion, Granger causality, Nigeria.

INTRODUCTION

The positive effect and monetary competitiveness is still one of the most questionable subjects in recent discourse. A number of authors include critically evaluated its utilization, ideological implications and economic benefits connected with it (Spybee, 1996; Scholte, 2000; Onyeonoru, 2003; Onyemenan, 2004; Eboreime and Iyoko 2008).

Globalization which is characterized by an amplification, rise of cross-border trade and increased financial and international direct expense flows offered by quick liberalization presupposes that globalization is beneficial to the extent it can lead to increase in capital goes and economic growth. Yet the concomitant unequal distribution of these benefits plus the fear stated by many developing countries about the negative impact of globalization, has made problem on the romance between the positive effect (characterized by foreign immediate investment, economic system openness and net capital flows) and economic progress both in developed and producing countries lay at the heart of debates in economic advancement policy.

The empirical consequence on the marriage is neither straight forward nor clearly distinct. While a lot of researches applying different techniques have identified growth to be enhanced by simply globalization as well as its channels (Ojo and Oshikoya, 1995; Edwards, 1998; Ben-David et al 2000), others found a poor effect of globalization characterized by openness and FDI on development (Ndiyo and Ebong, 2003; Edison ou al, 2002; Reisen and Solo-2001). The negative result on the influence of globalization was related to the economic situation in the countries under the study. Most of these countries mere not really fully ready and designed to stomach and accommodate globalization plus the competitiveness associated with it. This further highlights that the amount of development of a rustic in terms of her domestic financial system and other elements determines the flow of globalization and its particular benefits. Therefore , it becomes imperative not just to investigate if there is a relationship among globalization and economic progress but also to investigate the causal link between globalization and economical growth provided that globalization and economic growth are determined simultaneously. Thus the objective of this kind of paper is always to investigate the causal marriage between globalization and economical growth employing co-integration methods on time series data in Nigeria. To date, majority of the empirical studies focused just on the romantic relationship between globalization and economical growth. Simply few research have looked at the connection relationship among globalization's channels and economical growth within a developing country like...

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