Globalisation and Competitiveness in Nigeria

International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue X, October 2021 | ISSN 2454–6186

Globalisation and Competitiveness in Nigeria

Saviour Sebastian Udo¹ and Jacob, Augustine Okon^2
1Department of Economics, University of Calabar, Cross River State, Nigeria
²Department of Economics, Obong University, Obong Ntak, Akwa Ibom State, Nigeria

Abstract: This study examines the effect of globalization on the competitiveness of Nigeria. The methodology of the classical linear regression paradigm was used for the empirical study of the Autoregressive Distributed Lag technique. The data were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin 2019 and World Development Indicators. Globalization, Company Comfort (EODB), Federal Foreign Direct Investment (FDI), imports on capital goods and Government Efficiency (GOVEFF) from 1980 to 2018 (WDI). The results showed that globalisation, both in the long run by 0.9787 and in the short run by 0.27606, had a positive and significant effect on Nigeria competitiveness. The result described a number of drivers of Nigerian globalisation, for globalization and competitiveness. Based on these results, the study recommended that the government implement policies to ensure that companies flourish in a conducive setting. In Nigeria, in particular, a seamless business registration process should be created. This study suggests other steps that the government should put in place to make Nigeria more competitive in an increasingly global market which are credit facilities, tax incentives, and infrastructure provision.

Keywords: Globalisation, Business, Competitiveness, Efficiency, Government, Investment

I. INTRODUCTION

Globalization is seen as the increasing interconnectedness of people and societies and the interdependence of economies, governments and environment. It is the process of creating networks of connections among actors at multi-continental distances, mediated through a variety of flows including people, information and ideas, capital and goods. Globalization is conceptualized as a process that erodes national boundaries, integrates national economies, cultures, technologies and governance, and produces complex relations of mutual interdependence. Globalization is grouped into economic, social and political (Barikor, 1999).

Nations that open their economies and coordinate their economic policies, liberalize trade and move capital across borders are more likely to accrue benefits that are not possible otherwise (Nnadi, 2009). Globalization enhanced global communication, interaction and exchange of ideas among people of different nationalities and background and it also transcends all spheres of life including the educational sector, as scholarly ideas are made available to those in search of knowledge.

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