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The Impact of Globalization on Manufacturing Output: The Case of Nigeria

Author

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  • Odebode, Adedapo
  • Aras, Osman Nuri

Abstract

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.

Suggested Citation

  • Odebode, Adedapo & Aras, Osman Nuri, 2019. "The Impact of Globalization on Manufacturing Output: The Case of Nigeria," MPRA Paper 108359, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:108359
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    References listed on IDEAS

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    1. Paulo Vaz & Werner Baer, 2014. "Real exchange rate and manufacturing growth in Latin America," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 23(1), pages 1-17, December.
    2. Gözgör, Giray & Bilgin, Mehmet Huseyin & Zimmermann, Klaus F., 2019. "Public employment decline in developing countries in the 21st century: The role of globalization," Economics Letters, Elsevier, vol. 184(C).
    3. Yeboah Asuamah, Samuel & Broni Pinkrah, Samuel & Quansah Abbey, Paul, 2016. "What is the Effect of Economic Globalisation on the Productivity of the Manufacturing Sector of Ghana?," MPRA Paper 71379, University Library of Munich, Germany.
    4. Zerrin K l carslan & Yasemin Dumrul, 2018. "The Impact of Globalization on Economic Growth: Empirical Evidence from the Turkey," International Journal of Economics and Financial Issues, Econjournals, vol. 8(5), pages 115-123.
    5. Leon Berkelmans, 2005. "Credit and Monetary Policy: An Australian SVAR," RBA Research Discussion Papers rdp2005-06, Reserve Bank of Australia.
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    Cited by:

    1. Ayoub Rabhi & Brandon Parsons, 2024. "How is Central Bank Independence Shaping Income Inequality in Developing Countries?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 30(2), pages 159-176, May.

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    More about this item

    Keywords

    Globalization; manufacturing output; exchange rate; transportation; financial integration; Nigeria.;
    All these keywords.

    JEL classification:

    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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