Income Inequality Effects of Globalization in Oil-Rich Nigeria: Evidence From Time Series

American Journal of Economics, 9(1), 1-10.

10 Pages Posted: 7 Feb 2019

See all articles by Ebele Nwokoye

Ebele Nwokoye

Nnamdi Azikiwe University - Department of Economics

Nnenna Nneka Ezeaku

Nnamdi Azikiwe University - Department of Economics

Nkechinyere Rose Uwajumogu

Federal University Ndufu-Alike, Ikwo

Date Written: January 15, 2019

Abstract

Incidences of rising income inequality in Nigeria have raised questions on its link with globalization. Using quarterly time-series data on an empirical model which is hinged on Stolper-Samuelson theorem, the Johnson cointegration test and error correction model showed that globalization, technology and foreign direct investment significantly heightened income inequality while that of productivity significantly diminished income inequality in Nigeria in the long run. This study recommends support for domestic entrepreneurship through import substitution and export promotion strategies so that Nigeria to enjoy gains from globalization. Furthermore, increased access to public service such as health care and high quality education among the poor and vulnerable is desirable for sustained increase in labour productivity.

Keywords: Globalization, FDI Inflow, Income Inequality, Nigeria, Productivity, Wage

JEL Classification: D63, F02, J30, O40

Suggested Citation

Nwokoye (nee Nwabude), Ebele and Ezeaku, Nnenna Nneka and Uwajumogu, Nkechinyere Rose, Income Inequality Effects of Globalization in Oil-Rich Nigeria: Evidence From Time Series (January 15, 2019). American Journal of Economics, 9(1), 1-10.. Available at SSRN: https://ssrn.com/abstract=3321164

Ebele Nwokoye (nee Nwabude) (Contact Author)

Nnamdi Azikiwe University - Department of Economics ( email )

Enugu-Onitsha Expressway
Nnamdi Azikiwe University
Awka, Anambra
Nigeria

HOME PAGE: http://www.unizik.edu.ng/profile/nwokoyees

Nnenna Nneka Ezeaku

Nnamdi Azikiwe University - Department of Economics

Enugu-Onitsha Expressway
Nnamdi Azikiwe University
Awka, Anambra
Nigeria

Nkechinyere Rose Uwajumogu

Federal University Ndufu-Alike, Ikwo ( email )

Ikwo
Nigeria

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