Title:
ECONOMIC GLOBALIZATION, EXTERNAL TRADE AND THE NIGERIAN ECONOMY

Authors:
Nteegah, Alwell, Nigeria

Abstract:

The merging of all the countries' economies into a global village due to information technology and trade make it imperative to examine how the Nigerian economy had benefited from economic globalization and external trade. To achieve the objectives of this paper, the Nonlinear Autoregressive and Distributed Lag (NARDL) approach was used to ascertain the long run dynamics and the degree of asymmetry among globalization, external trade and economic growth in Nigeria. The result shows that all the explanatory variables in this model both in the short and long run were insignificant in explaining shocks in economic growth in Nigeria. This implies that economic globalization and external trade have less impact on economic growth in Nigeria over the period of this study. The result further shows that asymmetric or balanced relationship exists between economic globalization, trade and economic growth in Nigeria. This implies that the Nigerian economy does not adjusts speedily to changes in long run dynamics. Which connotes that policy change in economic globalization and external trade has less implications on the growth of the economy. Based on this findings, the paper suggests: a review of conditions for foreign investment, restrictions of import, the diversification of export base of the economy by creating value addition for goods produced for export and building of critical infrastructures like human capital base and power.