Impact Assessment of Globalization and Capital Flow on the Nigerian Economy

  • Abraham Vincent Atayi
  • Felix Olusegun Ibukun
  • Ijayida Bzigu Kwazhi
  • George Ojo Abdulsallam
  • Nneamaka Loretta Nkire


This study examines the impact of globalization and capital flow on Nigerian economy during the period of 1983-2019. The variables used include trade openness, government expenditure, money supply, exchange rate and capital were analyzed using co-integration and error correction model to understand the relationship between the variables mentioned. Result shows that the variables are co-integrated. Globalization has a negative and significant association with capital inflows in the short run. In addition, the relationships between globalization and capital inflows is positive and significant in the first lag. The Johansen test found that the variables in the model on the effect of globalization on capital outflows are co-integrated. Globalization has a favorable and strong relationship with capital outflows in the short run, both in the current time and one year afterwards. The study recommends among other things that Nigeria's business environment should be well-developed in order to attract both domestic and foreign investors to the economy.Keywords: Globalization, Capital Flow, Co-integration, ECM and Economy