Published 2025-05-14
Abstract
This paper examines the effect of global economic integration on
Nigeria's Manufacturing Sector during the period of 1981 to 2018.
The study employs three variables as proxies for globalization;
namely: trade openness, FDI, and exchange rate. Our findings
showed that Openness and FDI have significant positive impacts
on manufacturing sector growth in the long run; while interest rate
has a long run negative impact on manufacturing output in
Nigeria. Furthermore, our findings showed that exchange rate
and financial deepening do not significantly contribute to
Manufacturing Output in Nigeria in the long run. However, in the
short run, all the explanatory variables exact significant impacts
on manufacturing Output in the short run. While the impact of
openness is positive in all the periods; FDI, EXR, FDEEP and
INTR all have mixed impact on manufacturing Output in the short
run. The study recommends that Nigeria must emphasize and
vigorously pursue export-led growth through industrialization.
Our export basket must be diversified and be dominated by
manufactures, in order to fully harness the benefits that
globalization offers.