The Impact of Globalization on Manufacturing Output: The Case of Nigeria
Adedapo Odebode, Osman Nuri Aras, (2019). "The Impact of Globalization on Manufacturing Output: The Case of Nigeria", Journal of Management, Economics, and Industrial Organization, 3(3), 60-77. DOI Number: DOI: 10.31039/jomeino.2019.3.3.5
18 Pages Posted: 10 Oct 2019
Date Written: September 01, 2019
Nigerian government has put in considerable effort at improve bilateral relation in the economy; its net effect is yet unclear. This raises concerns about the tradeoff benefit between trade openness as a proxy to globalization and contributions to the manufacturing output in Nigeria.
This study examines the impact of globalization on manufacturing output in Nigeria. Using structural vector autoregressive (SVAR) approaches, from 2010Q1 to 2018Q4, the findings reveal that manufacturing output and transportation responded significantly to the foreign shocks emanating from globalization. The study established that the manufacturing output reacted negatively to exchange rate fluctuations, implying that exchange rate is very important to manufacturing sector in Nigeria. On the same vein, transportation, financial integration and globalization respectively were affected positively and significantly by exchange rate fluctuations to manufacturing sector.
Keywords: Globalization, manufacturing output, exchange rate, transportation, financial integration, Nigeria
JEL Classification: O19, O40, O55
Suggested Citation: Suggested Citation