Authors :
Mohammed Hammajumba; Ijeoma Emele Kalu; Sylvester Udeorah
Volume/Issue :
Volume 8 - 2023, Issue 9 - September
Google Scholar :
https://tinyurl.com/2c34uszp
Scribd :
https://tinyurl.com/63r6h8wy
DOI :
https://doi.org/10.5281/zenodo.8420225
Abstract :
This study examines the influence of
globalization on poverty reduction in Nigeria from 1995
to 2022. We specifically look at the impact of export
concentration index (LNECI), foreign portfolio
investment (LNFPI), foreign direct investment (LNFDI),
financial openness (LNFOP), trade openness (LNTOP),
and poverty rate (LNPOVR). The study's data came
from the World Bank and the Central Bank of Nigeria's
statistical bulletins, and it was analysed using descriptive
statistics, Granger causality, unit root, and the
Autoregressive Distributed Lag (ARDL) tests at the 5%
level of significance. The ARDL F-Bounds test, which
disproves the long-run form, is required since the unit
root test demonstrates that the variables were integrated
at level and first difference. For LNPOVR, the short-run
ARDL test reveals that LNPOVR is positive and
significant, indicating that it is autoregressive. LNECI
and LNFPI are negative and inconsequential to
LNPOVR; LNFDI is negative but significant to
LNPOVR; LNFOP is positive but significant to
LNPOVR; and LNTOP is positive and significant to
LNPOVR. The result of the Granger Causality test
shows the absence of directional causal-effect from
LNTOP, LNFDI, LNFOP, and LNECI to LNPOVR.
However, there is the presence of uni-directional causal-
effect from LNPOVR to LNFPI in Nigeria. The study
concludes that globalization significantly promotes
economic development in Nigeria. The study
recommends that the Nigerian Investment Promotion
Commission (NIPC) should continue to support
favourable policies and build an environment that
encourages foreign direct investment while acting as a
voice for Nigeria. These steps are essential in luring
international investors and establishing Nigeria as a safe
investment location.
Keywords :
Concentration, Poverty, Economic Performance, FDI, Financial Openness.
This study examines the influence of
globalization on poverty reduction in Nigeria from 1995
to 2022. We specifically look at the impact of export
concentration index (LNECI), foreign portfolio
investment (LNFPI), foreign direct investment (LNFDI),
financial openness (LNFOP), trade openness (LNTOP),
and poverty rate (LNPOVR). The study's data came
from the World Bank and the Central Bank of Nigeria's
statistical bulletins, and it was analysed using descriptive
statistics, Granger causality, unit root, and the
Autoregressive Distributed Lag (ARDL) tests at the 5%
level of significance. The ARDL F-Bounds test, which
disproves the long-run form, is required since the unit
root test demonstrates that the variables were integrated
at level and first difference. For LNPOVR, the short-run
ARDL test reveals that LNPOVR is positive and
significant, indicating that it is autoregressive. LNECI
and LNFPI are negative and inconsequential to
LNPOVR; LNFDI is negative but significant to
LNPOVR; LNFOP is positive but significant to
LNPOVR; and LNTOP is positive and significant to
LNPOVR. The result of the Granger Causality test
shows the absence of directional causal-effect from
LNTOP, LNFDI, LNFOP, and LNECI to LNPOVR.
However, there is the presence of uni-directional causal-
effect from LNPOVR to LNFPI in Nigeria. The study
concludes that globalization significantly promotes
economic development in Nigeria. The study
recommends that the Nigerian Investment Promotion
Commission (NIPC) should continue to support
favourable policies and build an environment that
encourages foreign direct investment while acting as a
voice for Nigeria. These steps are essential in luring
international investors and establishing Nigeria as a safe
investment location.
Keywords :
Concentration, Poverty, Economic Performance, FDI, Financial Openness.
