Globalization and the performance of the manufacturing sector in Nigeria

Abstract

Globalization is a modern Western ideology of colonization introduced to continue Western domination on African countries after the demise of the traditional colonization. Trade is one of the major instruments of modern colonization (globalization) introduced by the Western world, primarily with the main motive of advancing their own economy by exploiting Africans of their well endowed natural resources. In an attempt to examine the impact of globalization on the Nigerian industrial sector, the study adopted the OLS method of analysis using trade openness, net foreign direct investment and exchange rate as indicators of globalization. In line with the objectives of the study, secondary data were collected from World Bank Development Indicator data base and CBN Statistical Bulletin, covering the period of 1981 to 2019. The estimated model established that on a whole and in agreement with the apriror expectation, trade openness and foreign direct investment have a positive impact on the Nigerian economy. Based on the t-statistics of the individual variables, the study came to the conclusion that although globalization had impacted more positive on the Nigerian economy, there are still rooms for improvement. There is the need for Nigeria to focus more on exportable productivity since the more an economy exports to other countries of the world, the more revenue accrues to the economy.