Globalization and Economic Growth. An Econometric

The growing integration of economies and societies all over the world has been one of the most discussed topics in international economics for several years. Globalization has many dimensions and with it a variety of social, political and economic implications. This paper examines the causal relationship between globalization and economic growth in Nigeria from 1981 to 2012. Time series data was used and sourced from the CBN Statistical Bulletin and Annual reports. The stationarity of the variables were tested using the Augmented Dickey-Fuller (ADF) and Phillips Perron (PP) unit root tests. They were found to be integrated of order I (1). Hence, the null hypotheses of having a unit root were rejected and all the series were used in our cointegration test after first difference. The variables used in the model were GDP, Financial integration, human resource development (HRD) and trade openness (OPEN). Cointegration result indicates the existence of a long run equilibrium relationship. The regression results show a positive and insignificant relationship between financial integration, human resource development and trade openness while gross fixed capital formation was negative and insignificant. Granger causality shows a unidirectional causal relationship between financial integration and gross fixed capital formation. There is also a unidirectional causality between trade openness and gross fixed capital formation. The insignifican