Abstract
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1.0 INTRUDUCTION
Globalization remains one of the most controversial
subjects of our time. Several authors and ideological
applications. Globalization is the close interaction between
national economics through trade investment and capital
flows made possible by technological development and
advancement in telecommunication world to a global village.
Globalization has evolved over the years but its rapidly
intensified after the end of the world war.
According to Giddens (1990) Globalization can be
defined as “the intensification of world wide social relation
which link distant localities in such a way that local
happenings are shaped by events occurring many miles away
and vice-versa, irrespective of the ongoing controversy and
measures of ambiguity in its uses, it often depicts the
transformation of the relations between states, institutions
groups and individuals, it describes the growing economic,
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political, technological and cultural linkages that connects
individuals, business and Government around the world.
Globalization slowed during the world war as a result of
protectionist policies applied to defend ideological interest by
the major protagonists.
The main driving forces of this process are technology,
policy and competition and its subordinate domestic
economics to global market conditions and practices.
Developed nations are the beneficiaries of globalization as
their share of world trade and finance has expanded at the
expenses of developing countries. Thus, the process has
worsened inequality between the world’s region and providing
in the developing world. Nigeria has not benefited from
globalization due to mono culture export, inability to attract
increased foreign investment and huge indebtedness. But
globalization can be domesticated in the county through
diversification of exports debt reduction and expanded
development co-operation with other countries. The Nigerian
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states also need to be strengthene as a bulwark against the
dictates of foreign capital. All these accomplished, Nigeria
could join the league of countries enjoying the benefits of
Globalization.
1.1 BACKGROUND OF THE STUDY
Globalization is a system that confers benefits and
posses challenges and risks to countries across the globe and
has gained momentum from the last quarter of the twentieth
(20th) century. It is the intensification of cross border trade
and increased financial and foreign direct investments flows
among nations, promoted by rapid advances in and
liberalization of communication and information technology.
Technology, polling and competition are the forces during
globalization. This is attested to, for example, by advances in
computing technology, which enables traders to meet their
demands for financial instruments such as swaps and future
with relative ease. Globalization constitutes a mega trend in
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global political economy and has assumed a new phase in
contemporary international economic relations, given the
merged socio-political and economic transformation as well as
the technological economic transformation as well as the
technological advancement in communication, information
transportation etc. The process seems to be irreversible.
Nations, states have indeed consistently intensified efforts
towards engaging in business across national borders and
constructing production and distribution network on a global
production and distribution network on a global scale.
The international institution that overseen world trade
and finance like the IMF, the world Bank, WTO play an
increasingly important role in this era of globalization.
Globalization has both negative and positive impacts,
amongst the negative impacts are the rapid spread of
diseases, crime, illicit drugs, terrorism and uncontrolled
migration, which is one of the greatest problem facing
Nigerian economy. The problem became more pronounced
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and aggravated by the structural adjustment programme
(SAP) and more recently by globalization. Given the low level
of industrialization and the SAP. Induced under utilization of
industrial capacity in the Nigeria economy, globalization has
translated into the restriction of Nigeria to primary production
even with this the price of primary commodities is extremely
determined. This transport Nigeria into a powerless situation
where she lacks direct control over the crisis in her economy
because her hands are tied by the terms and dictates of
globalization.
The most drastic evidence of globalization is the increase
in trade and the movement of capital stocks, bonds,
currencies and other volume of investments from the period
of (1950-2001). The volume of worlds export rose by 20 times
and by 2011, world trade amounted to a quarter of all the
goods and services produced in the world. In the early
(1970’s) only $10 billion to $20 billion in national currencies
were exchange daily, by the early part of the 21st century.
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More than $1.5million worth of ten, Euros, dollars, pounds
and other currencies were traded daily to support the
expanded levels of trade investment which is as a result of
globalization.
1.2 STATEMENT OF THE PROBLEM
Globalization is a process of intensified inter dependence
which makes it possible for any one (country) to isolate itself
and expect to develop, the argument is that globalization
makes it possible for all nations to benefit from
interdependence. Interdependence is manifested in the
increasing economic linkages among countries through trade
and financial flow, it has been argued that interdependence
entails amplified risk and uncertainties and one major
challenge of most countries especially developing countries
like Nigeria is “How to Manage this Risk and handle
Uncertainties”, more profoundly, interdependence mean that
opportunities for collective gains are enhances but
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vulnerability is also greatly manifested. Developing countries
are thus faced with the magnification of vulnerability and
opportunity.
Globalization is a very uneven process with unequal
distribution of its benefit and losses. This imbalance leads to
polarization between the developed countries that gain and
developing countries that lose out (OBADAN, 2001). In this
regard, the place of Nigeria in the globalization agenda
requires some indepth study. To begin with, Nigeria s
economically weak due to inadequate domestic economic
capacity and social infrastructure needed to boost the
country’s productivity, growth and competitiveness.
Secondly, the economy is made weaker by mono-cultural
dependency and infavourable terms of trade in its export
trade as well as excruciating debt and debt service burdens.
Thirdly, by (1986), economic regimes were regulated and the
country pursued an expansionary fiscal and monetary policy
in its development effort (Obadan 1998). The problems were
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exacerbated by political instability and corruption as a result,
investment choices were distorted, which eroded the
confidence especially for foreign investors.
Globalization is a dynamic process, the stronger
countries are adjusting rapidly as the process advances, while
the weaker ones find themselves further marginalized. The
Nigerians inability to benefit from internalization is limited by
numerous factors which includes poor domestic management
of the economy, interest structural considerations of the
economy and some policies of western industrial countries.
The state of backwardness made Nigeria to be heavily reliant
on foreign supplies of industrial inputs such as capital
equipments, raw materials, spare parts and other
intermediate materials. The challenges now is for Nigeria to
use the enormous resources one has build to coherent,
internally, consistent self sustaining economy which will be
competitive in the world market. Nigeria must develop the
essential physical and human infrastructural to compete.
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Nigeria cannot expect to benefit from the process f
international corporation without radical restricting of her
economy, policies and society.
1.3 RESEARCH QUESTIONS
The following questions were posed guiding my
research for solution to the each problems:
1. How does globalization affect industrial growth in
Nigeria?
2. How has export affect the industrial output in
Nigeria?
3. Why is the rate of globalization in industrial growth of
Nigeria very low?
1.4 OBJECTIVE OF THE STUDY
The main objective of the study is to investigate the
impact of globalization the industrial growth of Nigeria.
Specifically, the objective are:
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1. To examine the impact of globalization on industrial;
growth in Nigeria
2. To determine the impact of export on the industrial
performance in Nigeria
3. To examine if foreign investment affects that growth of
the Nigerian industries
1.5 RESEARCH HYPOTHESIS
1. globalization has no significant impact on industrial
output in Nigeria
2. export has no significant impact on the Nigeria
industrial sector
3. foreign direct investment and exchange rate has no
significant impact on the growth of Nigerian
industries
1.6 SIGNIFICANT OF THE STUDY
The economic relevance of studying the impact of
globalization on the industrial growth of Nigeria needs not to
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be over emphasized. Globalization has brought rapid change
in Nigerian economy that seeks to increase their share of
financial and direct investment in the globalization market.
Globalization provides economic independence and
triggers competition, stimulating globalization to elevate the
living standard of people in the nation that offer themselves to
the world trade, “We have moved from a world where the big
eat the small to a world where the fast eat the slow” as
observed by Klaw Schwas of the Dawob world economic living
standard of people have considerably improved through the
market growth within the development in technology is not
only a stady incrasing demands but also it has led to greater
utilization.
The result of the study will also be significant in the
following way:
1. though the help of globalization, there has been easy
and accessible communication network which
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facilitate production, distribution of goods and
services both domestically and international
2. Globalization has rapidly improves the social and
economic status of women in the developing world.
The explanation is based on the fact that in a
competitive, globalization world, the role of women
becomes even more valuable.
3. Globalization breaks the regressive taboos responsible
for discriminating against people on basis of gender,
race or religious beliefs and it is an antidote to the
intolerant fundamentalism that appear to oppress
million of the worlds poorest, globalization offers hope
that one day they may enjoy the fruit of the west
liberal tradition.
4. Globalization has help in the reduction of likelihood
for war between developed nations. It has also help to
increase environmental protection in developed
nations.
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Finally, another factor which is often considered as a
positive outcome of globalization is the lower inflation.
This is be cause the market rivalry stops the businesses
from increasing prices unless guaranteed by steady
productivity. Technological advancement and
productivity expansion are two other importance of
globalization because since (1970s) growing
internationals rivalry has triggered the industries to
improve increasingly.
1.7 SCOPE AND LIMITATION OF THE STUDY
The study covers the growth of the Nigerian industrial
sector between (1985-2011).
The research work has been contained by lack of fund,
insufficient data especially on very recent economic
performance and limited period of time to get enough
research materials