Globalisation: Its impact on Nigeria's economy and implication on national development

Daniel Chigozie Umeghalu

Bachelor's thesis

Abstract:

Globalization involves economic integration; the transfer of policies across borders; the transmission of knowledge; cultural stability; the reproduction, relations, discourse of power; a global process, a concept; a revolution and an establishment of the global market free from socio-political control. However, negative impacts of globalization such as the spread of coronavirus (COVID-19), has its toll on the economy of the nations. The emergence of the novel coronavirus has worsened Nigeria's fiscal sustainability. The economy has been plagued by high unemployment, rising inflation rates and low real GDP growth. The pandemic exposed the dire need for economic policies formulated to place the Nigerian economy at vantage point at the end of the pandemic era, the COVID-19 virus. Like other developed and developing economies, the coronavirus will most likely impact the Nigerian GDP negatively. The restrictions imposed on movement of goods do not only affect human activities but also takes its toll on the level of demand for oil and this have caused a dwindling global oil market. Rather than strengthening the economy, globalization seeks to retrench it. This study quantitatively examined the level of the Nigerian economic growth; assessed the relationship between globalization and unemployment rate; and also assessed the impact of globalization on the Nigerian economy. The study adopted an exploratory research design, which used panel economic data between year 2000 and 2019. The data were analysed using statistical tools such as mean, and multiple linear regression. The study concluded that the nation’s GDP is a reflection of poor policy instruments and few buffers to cushion adverse economic effects like COVID-19. The study also concluded that foreign direct investment is an important factor to be considered, if the country is to benefit from the globalization process. The study recommended that the creation of conducive environment to encourage FDI, through the creation of enabling environment like constant power supply, good road and rail networks. The study also recommended that inequality between the poor and the rich should be minimized, and the economy regulated and the Nigerian government should find the best method to counter the harmful effects of globalization, such as Covid-19.

Keywords

Economic Development, Impact, Nigeria, Globalization

Language used: English

Date on which the thesis was submitted / produced: 14. 3. 2021

Thesis defence

• Supervisor: RNDr. František Mošna, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme:
Informatics