Exploring Globalization Industrialization Nexus for Economic Development: A Case of Nigeria
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In the light of the wind of globalization blowing
across the globe, several countries have embraced
globalization policies. Since globalization connotes
a nexus of relations, the expected overall effect of
its policies is to boost economic growth and
development, thereby improving welfare. Upon the
recent World Bank report proclaiming the manufacturing sector as the most dynamic component
of the industrial sector, this study examines
the globalization-industrialization nexus by
focusing on the manufacturing sector in Nigeria. In
establishing the globalization-industrialization
nexus in Nigeria, the augmented Solow model was
adopted and annual data covering 1970-2001 were
employed. This study finds that openness to trade
and increased Information and Communication
Technology (ICT) has significantly influenced the
level of manufacturing output in Nigeria. In fact,
technology and degree of openness were found to
have positive impact on aggregate manufacturing
output. The policy implicatiOI(l of this study is that
the degree of openness and adoption of globalization,
ceteris paribus, could stimulate manufacturing
production. This study also notes that sound policies
that promote technical capacities or specific
knowledge and outward trade relations between
countries, need to be adopted to enhance the
competitiveness of Nigeria s manufactured exports
in the world markei.
Keywords
HB Economic Theory