Economic Growth and Human Development Effect of Globalization in Nigeria: Evidence in the Democratic Era

Abstract

The paper empirically investigates the effect of globalization on economic growth and human development in Nigeria in the new democratic era (1999 – 2011). Using annual time series data sourced from the International Monetary Fund (IMF) WEO database, National Bureau of Statistics (NBS), the Central Bank of Nigeria (CBN) Statistical Bulletin, the Central Intelligence Agency (CIA) World Fact Book and the United Nations Development Programme (UNDP) annual human development report, and employing multiple linear regression model, it examines three channels through which globalization affects economic growth and human development – trade openness, financial openness and migration channel. The analysis indicated that the effect of globalization on economic growth has been more significant than its effect on human development, and that trade and financial openness have had significant negative effects on economic growth and human development, while net migration rate has had positive effect on economic growth and human development within the sample period, although, the effect on human development was statistically insignificant. Emanating from the findings, we proffered that caution should be exercised in embracing and implementing economic liberalization policies which are the hallmark of globalization, and to mitigate its negative effects on economic growth and human development. Recommendations for policy include diversification of the country’s export items/commodities and markets, political will to revive the nation’s real sector industrial, agriculture, and so on), strengthening of the nation’s financial, education, health and other institutions, etc.

Keywords: Globalization, Economic Growth, Human Development, Openness, Migration.