THE IMPACT OF GLOBALIZATION ON THE INDUSTRIAL GROWTH OF NIGERIA (1980 - 2010)

THE IMPACT OF GLOBALIZATION ON THE INDUSTRIAL GROWTH OF NIGERIA (1980 - 2010)

ABSTRACT

This study is meant to investigate the impact of globalization on the Industrial Growth of Nigeria covering the range of 31years (1980-2010). It is obvious that Nigeria as a country still depends on the importation of productive inputs despite all efforts to develop her local resources. Thus, the objective of this study is to determine the impact of globalization on the industrial growth of Nigeria. The study reveals that for Nigeria to benefit from globalization her productive capacity, economic structure, political stability, macroeconomic policy and technology should be enhanced. Since we found out that trade openness has a negative impact on industrial growth. Therefore, it should be handled with caution, policies should be directed to decrease trade openness, especially where Nigeria has a comparative advantage due to the fact that we have abundant labour, we should promote labour intensive method of production and export commodities to earn foreign currency for use in other sector. In that case, the government should take agriculture seriously and also encourage local producers by giving them incentives in the form of tax rebates.

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF STUDY

Globalization has benefited the advanced countries at the expense of the less developed countries. To the Marxists, this is not surprising as they hold that globalization is a product of the capitalist. They argued that the capitalist system epitomizes exploitation, it involved class conflict and it is a system of unequal relation marked by an unequal exchange. It is a system where one group must benefit at the expense of the other. Thus globalization being of such a system is bound to be exploitative.

Several scholars has traced the origins of globalization in modern times, others trace its history long before the European age of discovery to the new world. Some even trace the origins to the third millennium BCE. Since the beginning of the 20th century, the pace of globalization has intensified at a rapid rate, especially during the post cold war era. The term globalization has being in use since the mid-1980’s and since the mid 1990’s.However, the main originators of globalization can be traced to the classical economists that showed that trade can be beneficial to their nation. Globalization developed through the Pre-capitalist era to the period of industrial revolution in England and evolved into what we are seeing today.