Ripple Effect of Globalization on the Economic Development of Nigeria: An ARDL Perspective

The study investigated the ripple effect of globalization on the economic development of Nigeria. The following are the specific objectives; to ascertain the effect of foreign direct investment on real gross domestic product in Nigeria; to examine the influence of portfolio investment on real gross domestic product. This study utilized secondary data obtained from the Central Bank of Nigeria Statistical Bulletin and from the relevant literatures. Ex-post facto research design was employed. The study adopted Auto Regressive Distributed Lag Model (ARDL) Regression analysis for hypothesis testing. From the analysis the result revealed that Foreign Direct investment (FDI) has no positive and non-significant effect on Nigerian Gross Domestic Product. (t-statistics is 1.221813 while the probability value is 0.2452). Portfolio investment has no positive and non-significant effect on Nigerian Gross domestic product. (t-statistics is 0.902370 while the probability value is 0.3846). we conclude that globalization has positively impacted on economic development in Nigeria. In view of the above, the study recommended that government should concentrate on providing the basic infrastructures to support the local organized private sector that are ready to invest domestic funds into the economy. Nigeria should ensure that it aligns its exports and imports components with appropriate policies that will reduce importation of consumer goods and other technologies. This will ensure that the Nigerian economic growth is stimulated by trade openness