Economic Globalization and Economic Performance Dynamics: Some New Empirical Evidence from Nigeria

Abstract

The study focuses on the macro-economic impact of leading economic globalization indicators on the Nigerian economy, during the period from 1980 to 2012. The findings from this study lend credence to the FDI-led growth hypothesis in developing economies. Moreover, migrants’ remittances inflow was found to be positively associated with economic performance, albeit in the short-run only. In contrast, the KOF dimension of economic globalization index (ECGI) was found to have an adverse effect on economic performance in the long-run and equally showed proof of a negative relationship in the short-run even though it was statistically insignificant. Similarly, real effective exchange rate and trade openness were found to be statistically insignificant in the short-run and long-run. Policy makers in Nigeria should endeavour to create robust legislation and credible institutional frameworks that would not only encourage more capital flows into the shores of Nigeria, but also would protect the country’s ‘interest’ in the midst of ongoing economic globalization.

DOI: 10.5901/mjss.2015.v6n1p87