Economic Globalization and Poverty in Nigeria Osundina Kemisola C.

Economic Globalization and Poverty in Nigeria Osundina Kemisola C.

Author by Dr. Jacob Ademola Osundina

Language: English

Abstract

The main objective of this paper was to determine the effect of economic globalization on poverty in Nigeria. Globalization was viewed through trade globalization using exchange rate, trade openness and net export and through economic globalization using foreign direct investment while per capita income (PCI) was used to indicate poverty. Time series data for 30 years were used and stationarity test was carried out using Augmented Dickey Fuller (ADF) test. ADF test showed that all the variables were stationary at first difference except PCI which was stationary at second difference (0.0000). OLS estimator was used and the results showed that foreign direct investment and net export have positive and significant effects on PCI while trade openness and exchange rate also have positive but not significant effect at 0.05 level of significance. It was therefore suggested that the composition of trade in Nigeria needs monitoring such that importation of raw materials would be more than importation of consumer/finished goods and exports of processed goods should be encouraged. Exchange rate could also have a significant effect on poverty if there is political will.


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