The Impact of Globalization on Manufacturing Output: The Case of Nigeria

Odebode, Adedapo and Aras, Osman Nuri (2019): The Impact of Globalization on Manufacturing Output: The Case of Nigeria. Published in: Journal of Management, Economics, and Industrial Organization , Vol. 3, No. 3 (2019): pp. 60-77.

Abstract

Nigerian government has put in considerable effort at improve bilateral relation in the economy; its net effect is yet unclear. This raises concerns about the tradeoff benefit between trade openness as a proxy to globalization and contributions to the manufacturing output in Nigeria. This study examines the impact of globalization on manufacturing output in Nigeria. Using structural vector autoregressive (SVAR) approaches, from 2010Q1 to 2018Q4, the findings reveal that manufacturing output and transportation responded significantly to the foreign shocks emanating from globalization. The study established that the manufacturing output reacted negatively to exchange rate fluctuations, implying that exchange rate is very important to manufacturing sector in Nigeria. On the same vein, transportation, financial integration and globalization respectively were affected positively and significantly by exchange rate fluctuations to manufacturing sector.

• Item Type: MPRA Paper
• Language: English
• Keywords: Globalization, manufacturing output, exchange rate, transportation, financial integration, Nigeria.
• Subjects: F - International Economics > F6 - Economic Impacts of Globalization > F62 - Macroeconomic Impacts; F - International Economics > F6 - Economic Impacts of Globalization > F63 - Economic Development

References

Yeboah Asuamah, S., Broni Pinkrah, S., & Quansah Abbey, P. (2016). What is the Effect of Economic Globalisation on the Productivity of the Manufacturing Sector of Ghana?. MPRA Paper No. 71379.

Berkelmans L. (2005). Credit and Monetary Policy: An Australian SVAR. Research Discussion Paper 2005-06. Economic Research Department Reserve Bank of Australia.

CBN (2014). Effects of Monetary Policy on the Real Economy of Nigeria: A Disaggregated Analysis. Occasional paper No.54, Real Sector Division, Research Department, Central Bank of Nigeria.

Central Bank of Nigeria. (2017). Annual Report.

Chete, N.; Adeoti, J. O.; Adeyinka, F. M. and Ogundele, O. (2016). Industrial development and growth in Nigeria: Lessons and challenges, Learning to Compete, Working Paper No. 8, Nigerian Institute of Social and Economic Research (NISER), Ibadan.

Egberi Kelvin Agbarha and Samuel Ajiri Peter (2017). Globalization and Economic Growth in Nigeria: A Cointegration Approach, Journal of International Business and Economics, June 2017, 5(1), 105-113.

Gözgör, Giray; Bilgin, Mehmet Huseyin; Zimmermann, Klaus F (2019): Public Employment Decline in Developing Countries in the 21st Century: The Role of Globalization. GLO Discussion Paper, No.326.

Gygli, S., Haelg, F., Potrafke, N., & Sturm, J. E. (2019). The KOF globalisation index–revisited. The Review of International Organizations, 1-32.

Maduka, A, C et al. (2017). Globalization and Economic Growth: Evidence from Nigeria, International Journal of Social Science and Economic Research, 2(8), ISSN: 2455- 8834

National Bureau of Statistics. (2019). Nigerian Gross Domestic Product Report, Q1 2019.

Nyeche, Ezebunwo & D. I. Ekine (2018). Trade Openness and Transport Sector Output Growth in Nigeria (1986-2016), International Journal of Advanced Studies in Ecology, Development and Sustainability, 5(1), IJASEDS ISSN Print: 2354-4252.

Olaniyi, T.A; Sakariyahu, O. R; Ariyo, A.A (2016). Impact of Globalization on Performance of Nigeria Capital, Amity Business Review, January-June 2016, 17(1), 1-15.

Robert J. Carbough (2017). International Economics, 16th edition.

Shuaib and Dania (2015). Foreign Trade and Economic Growth: Nigerian Experiences from 1960-2013, International Journal of Managerial Studies and Research (IJMSR), 3(5), May 2015, 7-21.

Usenobong. F. Akpan and Johnson.A. Atan (2015). The effect of Globalization on Selected Sectors of the Nigerian Economy: Agriculture, Manufacturing and International Trade, British Journal of Economics, Management and Trade, 8(2), 144-156, Article No. BJEMT. 2015.106 ISSN: 2278-098X

Vaz, P. H. and Baer, W. (2014). Real exchange rate and manufacturing growth in Latin America. Latin American Economic Review, 23(1), 2.

Zerrin Kılıçarslan and Yasemin Dumrul (2018). The Impact of Globalization on Economic Growth: Empirical Evidence from the Turkey, International Journal of Economics and Financial Issues, 2018, 8(5), 115-123.