ECONOMETRIC ANALYSIS OF THE IMPACT OF GLOBALIZATION ON THE NIGERIAN NATIONAL SAVINGS (1980-2005) (ECONOMICS PROJECT TOPICS AND MATERIALS)
ABSTRACT
The opportunities occurring from globalization (which is the process of greater integration of world economies through increasing flow of goods, services, capital, ideals and people), to participating countries have been an issue of controversy in the past decades. This is because some economists or scholars opine that it is imperative to any nations growth and development while others do not agree. In fact, they believe that the opportunities are not commensurate with the challenges thereby retarding the growth of savings in an economy. It is against this background that this study attempted to ascertain (using econometric analysis) the Impact of Globalization on Nigerian National Savings.Applying the ordinary least square analysis for Nigeria data over the period 1980 – 2002, the study concludes that for sustainable growth in the short run and development inn the long run, the government should formulate and implement sound macroeconomic policy, privatization, openness and trade policies that would optimize the indicators of globalization by maximizing its opportunities and maximizing its challenges.
CHAPTER ONE
INTRODUCTION
BACKGROUND TO THE STUDY
The relationship between globalization and financial development has been a subject of considerable interest to development economists in recent years. The concept of globalization, which is the great economic event of our era, is not of recent birth but a concept, which has been in the economic literature from the outset of time. Globalization is the process of increasing integration of national economies with the rest of the world to create a more coherent global economy. Globalization is the integration of national economies through trade and financial transactions, a process which has almost tended to inhibit the effectiveness of domestic policies to achieve its aim and objective.
Globalization links up various activities that takes place in the world today irrespective of the distance and it affect everything ranging from poor or low economic growth rates. The financial system of any country, especially the financial market which consists of the money market, the capital market and the banking sector play an important role if the country in question is to have any benefit from globalization. The major driving force of globalization is capital flow, which are very important in the development of a country. It is important to note that globalization is multi-dimensional and have various aspect which include: industrial, financial, economic, political, informational, cultural, ecological, social and technical/legal globalization. However, the focus of this study is financial globalization which means the emergence of world wide financial market and better access to external finance for corporate, national and sub national borrowers. IT could also mean the realization of a global common market, based on freedom of exchange of goods and capital.
