Publication Date: 2023/10/09
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.
DOI: https://doi.org/10.5281/zenodo.8420225
PDF: https://ijirst.demo4.arinfotech.co/assets/upload/files/IJISRT23SEP1550.pdf
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