THE IMPACT OF GLOBALIZATION ON ECONOMIC GROWTH IN NIGERIA

ABSTRACT

This work is directed towards the impact of Globalization and economic growth in Nigeria. It has been witnessed interdependence in the last two decades, thanks to globalization. The main driving forces of those process are technology, policy and competition and it subordinates domestic economics to global market conditions and practices. Developed nations are the beneficiaries of globalization as their share of world trade and finance has been expanded at the expense of developing countries. Thus, the process exacerbates inequality between the world regions and poverty in the developing world. Nigeria has not benefited to attract increased foreign investments and huge indebtedness. But globalization can be domesticated in the country through diversification of exports, debt reduction and expanded development cooperation with other countries. The Nigeria state also needs to be strengthened a bulwark against the dictates of foreign capital. All this accomplished, Nigeria could join the league of nations enjoying the benefits of globalization.

CHAPTER ONE

1.1 BACKGROUND TO THE STUDY

Globalization refers to an increasing inter-connectedness of the world, with immense growth and interaction on a broad social scale, from economy, politics, culture, military to crime. According to Allen and Thomas (2000), this means that actions or decision taken in one part of the world can have deep impact for others.

However, the process of industrialization and economic growth has been uneven. The permanent and systematic use of industrialization processes first occurred in the west, Bromley et al, (2001), explained that with ongoing disparities in use of technology and knowledge between the global North and South. Due to colonization history and unequal terms of trader poor countries still depend too much on primary commodity – export which are prone to decreasing world market prices. Rich countries of the OECD still count for four-fifth of the total world manufacturing out-put, whilst they count for only one-fifth of the world population. Also the 1980s, the adoptions of economic restructuring programmes (SAPS) imposed by loan lending negative impacts for many people in developing countries, losing their jobs due to coerced neo-liberal instrument.

1.2 STATEMENT OF PROBLEMS

According to the Africa dews service (2008), the Nigeria economy has been over dependent on petroleum as a source of revenue. Secondly, resource management (not just petroleum but natural as well), countries like Malaysia and Singapore in the 1970s had the same revenue with Nigeria but, today. Make more than 11 times the revenue of Nigeria.

1.3 OBJECTIVE OF THE STUDY

The objectives of the study are as follows:

(i) The purpose of the study is to identify the impact of globalization on economic growth in Nigeria.

(ii) This project will explore an over view of the new ways in which researchers and interventions programs has been addressing this problem.

1.4 RESEARCH QUESTIONS

Based on this purpose of the following questions will serve as guides.

 What impact does globalization have on the economic growth

1.5 HYPOTHESIS

The following hypotheses have been generated to direct the focus of the study.

Ho: there is no significant relationship between globalization and economic growth.

HA: there is significant relationship between globalization and economic growth.

1.6 SCOPE AND LIMITATION OF STUDY

This research work will focus on the study, the impact of globalization on economics growth in Nigeria.

Every academic endeavour especially research work has some limitations. Therefore, this study is not an exception as lack of time, inadequate finance, poor attitude of the respondents and poor library service in varies served as contain in the writing of this study.

1.6 SIGNIFICANCE OF THE STUDY

Based on this study, it intended that it will be useful to the government in carrying more purposeful and result oriented planning, controlled and evaluation of the Nigeria growth and industry with the view to enhancing their contribution to the Nigeria economy.

It is well believed that is the recommendation and implemented, it will promote more understanding for efficient operation and growth.

Finally, it will be useful to the management students and also to those who are interested in his area of study.

1.7 DEFINITION OF TERMS

(1) Globalization: The process of increasing the connectivity and interdependence on the world’s market and business.

(2) Economic: The relationship between production, trade and supply of money in a particular country or region.

(3) Beneficiation: Is the people that benefit from what is for then, e.g. like the rich countries who benefit from globalization.

(4) Economic boom burst cycle: High rate of economic growth in the economy suddenly destroyed as a result of recurring event of violent in our society.

(5) Recession: A difficult time for the economy of a country.

(6) Infrastructure: The basic structure and facilities e.g. road or power needed for the operation or society or organization.