This research work attempts to examine
the impact of globalization on growth and poverty alleviation in
developing countries. In this research work, the method of estimation is
based on the use of multiple regression technique.
A unique relationship between
globalization and poverty alleviation contributions was established. Our
empirical findings also suggests that there is significant relationship
between globalization and poverty alleviation to economic growth in
Nigeria via employment, investment etc although the problem of poverty
have not been total resolved, but it is certain in no distance future
all these problems will be eliminated.
TABLE OF CONTENTS
1.1 Statement of the Problem
1.2 Aim and Objectives of the Study
1.3 Research Questions
1.4 Significance of the Study
1.5 Research Hypotheses
1.6 Research Methodology
1.6.1 Model Specification .
1.7 Scope of the Study
1.8 Limitation of the Study
1.9 . Plan of the Study
CHAPTER TWO: LITERATURE REVIEW
2.2 Concept of Globalization
2.2 Globalization and Economic Growth
2.3 Concept of Poverty
2.4 Globalization and Its Conceptual Usages
2.5 Strands of Thought on Globalization
2.6 Forces in Globalization .
2.6.1 Technological Revolution
2.6.2 Economic Liberalization
2.6.3Democratic System of Governance
2.6.4Challenges for Nigeria
CHAPTER THREE: HISTORICAL BACKGROUND, BACKGROUND OF GLOBALIZATION AND THE NIGERIAN ECONOMY
3.2 Education and Socio-Cultural Structure
3.3 Impact of Agricultural Sector to the Development
of the Nigerian Economy Since 1980-Date
3.4 The Pattern of Agricultural Production in Nigeria
3.5 Impact of the Banking Sector to the Development
of the Nigerian Economy Since 1980-Date
3.6 Impact of Industrial Sector on the Nigerian Economy
3.7 The Nigerian Financial Sectors 59 References 65
CRAPTER FOUR: RESEARCH METHODOLOGY, DATA
ANALYSIS AND PRESENTATION OF RESULTS
4.2 Research Publication
4.3 Data Analysis
4.4 Data Limitation
4.5 Model Specification and Aprori Expectation
4.6 Criteria for Decision Making
4.7 Presentation of Data
4.8 Summary of Regression Analysis
4.8.1 Model Equation One
4.8.2Model Equation Two
CHAPTER FIVE: SUMMARY, CONCLUSION
5.4 Suggestions for Further Studies
Globalization can be described as the
rapid integration of economies and whole markets, intensified financial
flows, the information revolution, and cross-cultural currents. It can
also be defined as the restructuring of global capitalism, characterized
by the increased profile of international financial institutions,
corporations and technology.
Kwanashie, Mike (2003); stated that
economic globalization is a historical process, which is a result of
human innovation and technological progress. This concept
"globalization" is an increasing and encompassing phenomenon and it
involves the movement of labour and technology across international
borders. The concept of globalization has robust theoretical
underpinning, the resurgence of lasses-faire economic theory explained
these facts, it encapsulates both a description of changing patterns of
work trade finance, and overwhelming conviction that deregulated markets
will achieve optimal outcomes for growth and human welfare. The myths
surrounding globalization IS the expansion of global economy, which is
synonymous with an improvement in human welfare.
According to Taiwo, (2001); is of the
view that poverty alleviation is a word that has been bandied around by
Nigerian leaders of government since the return of democracy in 1999.
They frequently mention these words as a mark to show their commitment
towards providing a better life for the people. But it appears to me
that many Nigerian leaders do not understand what it takes to alleviate
the suffering of the poor masses of the country. Their programmes for
poverty alleviation can hardly build people's lives and provide them
with better living conditions. Little wonder many Nigerians are still
trapped in poverty despite government poverty alleviation programmes
across the country. There has been no improvement in the fight against
poverty and this is widespread that it requires no proof.
Nigerian leaders need to take a clue
from the western world on measures taken to reduce their people's
suffering. These countries have been able to achieve the desired results
through the provision of welfare programmes and leverage, provision of
jobs, affordable health care and counseling, investments in public
schools, building affordable houses, debates on teenage pregnancy,
police protection (state policing); parenting and literacy programmes
etc. Nigerian government could only alleviate poverty by adopting this
approach to' eradicate the poor conditions of many Nigerian. Any
government that is sincere about alleviating the suffering of the people
be it at the federal, state or local government levels should begin to
work in line with the above mentioned programmes in order to achieve
However, it is very vital to point out
that globalization does not just exist as an entity on. its own but it
.is developed in many other concepts like commercialization,
privatization, and deregulation. There have been several campaigns,
symposium and seminars nationally and internationally urging countries
of the world to trade (whether within and across borders and as such
agitating for world economic development.
1.1 STATEMENT OF THE PROBLEM
The globalization of the world economy
brings Immense benefits to countries that are able to harness the
resulting opportunities to the proper development of their human
resources. 'Though, globalization is actually making Nigerian economic
development easier and less costly to the economy as a whole by bringing
the benefits of capital flows, technological, innovations, and lower
import prices but the gains are distributed unevenly among countries
which make some groups to lose out especially the Third World Countries
However, the strongest gains have been
reaped by the advanced countries and the income gap between high income,
and low income countries have grown so wide that majority of the
citizens of low-income group live in abject poverty.
Nigeria as a country has 'not been able
to reap fully fruit of globalization because the factors that serve as
engine of globalization are underdeveloped. For a country like Nigeria
to complete globally, there must be government alleviation programmes,
constant electric power supply, advanced in technology and innovation,
development of Nigerian manufacturing sectors and the general
restructuring of all other sectors to complement the viable sectors.
The major problems that have crippled
Nigeria economy over the years have been problem of dumping. Foreigners
have taken advantage of our manufacturing sector and such imports
various goods both durable and consumables into our economy. This has
brought about a great challenge for the domestic products who apart from
political instability, economic factors and financial constraints been
However, the major reason for the study
of this research is to examine how globalization affects Nigerian
economic development as a whole.
1.2 AIM AND OBJECTIVES OF THE STUDY
The aim of this study is to examine "The Impact of Globalization on Growth and Poverty Alleviation in Developing Countries". The following .are the specific objectives of the study:
1. To examine the impact of globalization and poverty alleviation in developing countries like Nigeria.
ii. To examine the causes of poverty in developing countries.
iii. To examine the effects of
globalization and poverty alleviation programmes in developing countries
using Nigeria as a case study.
1.3 RESEARCH QUESTIONS
Therefore, the statements of problems are stated below by finding answers to the following questions:
a. What are the impacts of globalization and poverty alleviation to Nigerian economy?
b. What are the cause~ of poverty in developing countries using Nigeria as a case study?
c. What are the effects of globalization and poverty alleviation to economic growth of Nigeria?
1.4 SIGNIFICANCE OF THE STUDY
It is generally accepted fact that
globalization is global and dominant-In the world, today. The
differences· in the socioeconomic development across nations are
attributed much to the development of the concepts of globalization and
poverty alleviation in developing countries like Nigeria. In view of the
above the importance of this study will includes:
i. Globalization has become a "threat to the poor rather than an opportunity for global action.
ii. Many economists and policy
maker analysts argued that globalization particularly the increase
mobility of international financial capital, has undermined the ability
of countries "to engage in independent macroeconomic policies, whether
fiscal or monetary policies.
iii. And implications of this are
that government is less able to insulate programmes to alleviate poverty
and their economies from the adverse effects of trade.
iv. Any government that "is sincere
about alleviating the suffering of the people be it at the federal,
state or local government levels should begin to work in line with the
above mentioned programmes in order to achieve results.
1.5 RESEARCH HYPOTHESES
Based on the research problems and
objectives of the study, the following hypotheses have been formulated
for subsequent verification;
Ho: There is no significant relationship between globalization and poverty alleviation in developing countries.
HA: There is significant relationship between globalization and poverty alleviation in developing countries.
Ho: There is no significant relationship between globalization and causes of poverty in developing countries.
HA: . There is significant .relationship between globalization and causes of poverty in developing countries.
Ho: There is no significant relationship between globalization and effects of globalization to economic growth of Nigeria.
HA: There is significant, relationship between globalization and effects of globalization to economic growth of Nigeria.
1.6 RESEARCH METHODOLOGY
The methodology to be employed in the
course of this research work is analytical as a mode of investigation.
Secondary source of data will be based by way of information obtained
from the National Planning Commission, Federal Office of Statistics, and
other governmental and non-governmental organizations. Other
information will be obtained from annual reports, journals, magazines
and the internet.
However, in this research work the
method of estimation is based on the use of multiple regression
technique using the regress and regressor terminology. Econometric
techniques shall be used to study the relationship between the explained
and explanatory variables in mathematical form. Economic theory and
variable information that is related to the subject matter as well as
published studies on the subject by other research workers shall be used
in specifying the econometric model.
1.6.1 MODEL SPECIFICATION
GDP = ao + alINT + a2CPI + a3GCF + a4INV + µ
GDP = Gross Domestic Product
PVT = Poverty Alleviation
EC = Economic Growth
INV = Investment (Aggregate)
ao = Intercept or Constant term of the relationship
al- a4 = Parameters of Co-efficient
U1 = Stochastic Factor
1.7 SCOPE OF THE STUDY
The study shall focus on the impact of
globalization on growth and 'Poverty alleviation in .developing
countries using Nigeria as a case study. This study additionally
identifies the impact of globalization, the causes of poverty in
developing countries, the effect of poverty alleviation and
globalization to economic growth of Nigeria using Nigeria.
1.8 LIMITATION OF THE STUDY
The major relevant limitation or
limiting factor for this study was difficulty in getting relevant
information from appropriate sources.
1.9 PLAN OF THE STUDY
This project work is divided into five (5) chapters and they are as follows;
Chapter one consists of' the
introduction, statement of the problems, research questions, aim and
objectives of the study, research hypothesis, significance of the study,
research methodology, scope of the study, limitation of the study, plan
of. the study and the references. Chapter two also focuses on the
review of intensive, which is rent to review previous works that are
related to the topic under study. Chapter three consists of structural
composition of the study. Chapter four also consists of research
methodology, data analysis, interpretation and presentation of the
results while chapter five consists of the summary, findings,
recommendations, conclusion, then followed by the references.