Impact of Globalization on Financial Development in Nigeria

John Ayodele  Ajayi; Kyalo Stephen  Musyimi

Impact of Globalization on Financial Development in Nigeria

Publication date: 31.03.2022

Financial Law Review, 2022, Issue 25 (1)/2022, pp. 158 - 178

https://doi.org/10.4467/22996834FLR.22.010.15660

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Impact of Globalization on Financial Development in Nigeria

Abstract

This study examines the impact of globalization on Nigerian financial development with particular reference to foreign direct investment, trade openness, exchange rate, government expenditure, interest rate and inflation. The statistical data used for the study were obtained from Central Bank of Nigeria publications and [Statistical Bulletin 2020] and [World Development Indicators 2020]. The study employed the autoregressive distributed lag (ARDL) model. Major findings from the study show that foreign direct investment, trade openness and government expenditure have a positive and significant impact on financial development in Nigeria while exchange rate, interest rate and inflation rate have a negative significant impact on Nigerian financial development. It is recommended that Nigeria must face the challenges of globalization. For a country to belong to the race, major changes and restructuring are imperative, hence, Nigeria must develop the internal structure and the will to adopt those policies that brought about the benefits from globalization.

Keywords

Globalization, Financial Development, Nigeria, Autoregressive Distributed Lag

References

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Information

Information: Financial Law Review, 2022, Issue 25 (1)/2022, pp. 158 - 178

DOI: https://doi.org/10.4467/22996834FLR.22.010.15660

Article type: Original article

Authors

John Ayodele Ajayi

https://orcid.org/0000-0002-0227-5994

Department of Finance, Faculty of Management Sciences, University of Lagos-Akoka, Nigeria

Kyalo Stephen Musyimi

Department of Finance, Faculty of Management Sciences, University of Lagos-Akoka, Nigeria

Published at: 31.03.2022

Article status: Open

Licence: CC BY-NC-ND

Percentage share of authors:

John Ayodele Ajayi (Author) - 50%

Kyalo Stephen Musyimi (Author) - 50%

Classification number:

JEL Classification System:

Single Equation Models | Single Variables: Time-Series Models | Dynamic Quantile Regressions | Dynamic Treatment Effect Models | Diffusion Processes (C22)

General Equilibrium and Disequilibrium: Financial Markets(D53)

Economic Impacts of Globalization: Finance (F65)

Article corrections:

Publication languages:

English

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Number of downloads: 1258

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